APRIL 3 2013 (The Conway Bulletin) — Underlining Kazakhstan’s reliance on its energy sector, Kazakh PM Serik Akhmetov, signed into law a 50% increase in oil export duties.
From April 13, exporters will pay a $60 tax to the government for every tonne of oil they export, up from $40. Reuters quoted deputy economy minister Marat Kusainov as saying that the extra revenue will be spent on social projects.
Wherever the extra revenue is spent, energy companies will no doubt be tired of being used as a cash cow whenever the Kazakh government wants to raise cash.
The government has flip-flopped on the oil export duty, introducing it in 2008, scrapping it altogether in 2009, when the global economy tumbled and energy prices fell, before reintroducing it again.
In 2010, the export tax stood was $20 per tonne. This increased to $40 per tonne in 2011.
The oil export duty also re-enforces the feeling that the Kazakh government is often too focused on taxing energy exporters rather than developing other parts of the economy.
After all, in 2011 Kazakh government ministers promised there would be no oil export tax rise until at least 2014.
Clearly the plan, if not the mind-set, changed.
ENDS
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(News report from Issue No. 130, published on April 5 2013)