Petrol prices to go up in Kazakhstan in 2020
BAKU, Azerbaijan, Nov.26
By Nargiz Sadikhova - Trend:
Increase of excise tax on petrol will lead to a six percent increase of petrol prices in Kazakhstan, said Director of the Tax and Customs Policy Department of the Ministry of National Economy of Kazakhstan Azamat Amrin, Trend reports with reference to Kazakh media.
“Currently, the excise tax on petrol is eight tenge (2.1 cent), whereas the petrol price is 150 tenge (39 cents). We are increasing the excise rate from 10,500 tenge ($27) to 24,435 tenge ($63), which means an increase of 10 tenge per liter of petrol. Thus, excise tax will now be 18 tenge (4.7 cents),” Amrin said following the end of plenary meeting of Kazakhstan’s Senate.
Thus, he said, the petrol cost will increase by six percent from 150 tenge to 160 tenge per liter (39 cents to 41 cents).
“I would like to point out that excise tax is not the single price defining aspect. Kazakhstan is developing market economy meaning that the demand and supply should also be taken into account. In my opining the price won’t directly increase by 10 tenge (2.6 cents),” Amrin said.
He added that the graft of the corresponding decree has already been submitted to public authorities for alignment.
“Following alignment with branch government bodies the decree will be presented during government meeting, where a collegial decision will be made. The decree is to be introduced starting from January 1, 2020,” Amrin said.
He further noted that there is a number of reasons for the excise tax increase.
“The pain principle of taxation is that taxes should correspond to the level of services provided by the state,” he noted.
On November 25, Kazakhstan’s Minister of National Economy Ruslan Dalenov announced the planned increase of excise tax on petrol in the country.
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