Tax burdens to be reduced for investors in exploration
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.