Taxing time: in Kazakhstan
Kazakhstan lays out oil tax plans
A new oil tax proposed by the Kazakh government will apply to about 60% of the country's crude output next year, Economy Minister Bakhyt Sultanov said today.
Sultanov was presenting a reform package designed to shift the tax burden onto the oil, mining and metals sectors - mostly through a new mineral extraction tax - to foster the development of other industries.
The minister confirmed that foreign oil players operating in the Central Asian country under production-sharing agreements, including Chevron, Shell and ExxonMobil, will be exempt from the tax.
"Out of next year's projected production, the tax will apply to 44 million tonnes," Reuters quoted Sultanov as telling a parliament session.
He said his ministry saw 2009 output at 72 million tonnes, up from 70 million tonnes projected for this year. The government had earlier put the 2009 figure at 78 million tonnes.
The tax is progressive, starting at a market price of $60 per barrel and being levied at higher bands at higher benchmark prices. It will increase the oil sector's total tax burden to an estimated 62% from 49%, Sultanov said.
The new tax, part of a reform package that also includes a reduction in corporation tax, is expected to take effect next year.