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27 Июля, 2015 12:59

Tax burdens to be reduced for investors in exploration

The issue of reducing of the tax burden, the elimination and the reduction of administrative barriers, simplification of procedures is considered in order to attract investments in geological exploration, prospecting and exploration in Kazakhstan, First Vice Minister of Energy of Kazakhstan Uzakbai Karabalin has said in the CCS.
Tax burdens to be reduced for investors in exploration | Strategy2050.kz

During the period 1996-2014 the exploration costs amounted to 3 dollars per square kilometer. Of these, only about ten percent was spent on exploration of poorly known in Kazakhstan. This was the reason that over the past 10 years we have not had large deposits of oil and gas.

"The Government of Kazakhstan in order to stimulate investment in geological exploration, prospecting and exploration considers to reduce the tax burden (VAT, import and customs duties), the removal and reduction of administrative barriers and simplification of procedures. In addition, it’s planned to introduce a differentiated approach by providing tax incentives and preferences, depending on the complexity and development of the field", U. Karabalin has said.

According to him, a gradual shift of the tax burden from the back of the taxation of profits can play a positive role too.

"These works are carried out between the state bodies. To ensure the realization of tasks on such a project as "Eurasia", the creation of a consortium in a public-private partnership in the future implementation of the program of work from 2016 to 2021 is planned. In addition, there will be a necessity to develop the Code on mineral resources, which is scheduled for 2015-2016. We are working on amendments to the Tax Code on reducing of the tax burden in conducting geological studies of find of prospecting and geological study of the contract of the Caspian Basin", Vice Minister has said.

Due to the above-mentioned reforms it’s planned to provide: the transfer of advanced technologies of exploration in Kazakhstan, identifying of promising areas of oil and gas exploration, the creation of favorable conditions for attracting investments, growth of proved recoverable reserves at least twice (now estimated at 3.9 billion tons), the creation of the resource base as a "safety cushion" for possible economic shocks, long-term support of high oil production (TOP-12) in the world rankings.

Anara Tanyrkulova

chronicle 2050

SMEs will make up at least 50% of the GDP

abour productivity will reach up to $126 000 and 3 to 6 y.o. kids will have 100% access to pre-school education in Kazakhstan.

Kazakhstan will fully satisfy its own market of POL in compliance with the new environmental standards

The share of non-primary exports in total exports will double and triple by 2040

Transition to Latin graphics will commence

95% of the population will speak Kazakh

15% of the area under cultivation will make use of water-saving technologies.

The issue of providing water for irrigation will be resolve

GDP per capita will stand at $60 000

The urban population will represent 70% of the total population in Kazakhstan