Kazakh official: Republic applies customs duty due to growth in world oil prices
Kazakhstan, Astana, Sept. 4 / Trend S.Suleymanov /
Introduction of customs duty is the country's reaction to the growth in world oil prices, Kazakh Oil and Gas Ministry's Executive Secretary Kanatbek Safinov said.
"The government's decision to increase export duties on oil - is a reaction of the republic to rise in the world oil prices," Safinov said.
In his view, investors are unlikely to have reason to point to the worsening investment climate in the country, as no duty is applied in a number of cases.
Thus, the export tax does not apply to oil, which was produced under the PSA, Safinov added.
"Despite the fact that the law on PSA was canceled, we've got 15 active PSAs. We do not conclude new PSA contracts," he said.
The oil, which is extracted under the contracts in which, just as in the PSA, provided exemption from customs duties on crude oil, are also free of export duties, he said.
Introducing the customs duties, the state takes care of maintaining the balance of economic interests in terms of rising prices, Safinov said.
"No state has commitment to the stability of customs fees and duties. These relations are regulated on the date of their occurrence, which is linked with the fact of crossing borders. And this is a worldwide practice," Safinov said.
Finance Minister Bolat Zhamishev reported Sept.2, that Kazakhstan will increase export customs duty (ECD) on oil twice up to $40 per ton in 2011.
"The most significant return of additional revenue is projected to occur thanks to increasing the export duty on oil from $20 dollars r ton to $40 per ton," he said representing draft budget for 2011 -2013 to the government.
The ECD proceeds on oil are planned in the amount of 421.4 billion tenge in 2011.
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