Kazakhstan Prepares to Double Oil Export Taxes From Next Year

Dec 9. Bloomberg

By Nariman Gizitdinov

Kazakhstan Prepares to Double Oil Export Taxes From Next YearKazakhstan still plans to double its oil export duty from next year after the government published an order today keeping the tax at $20 a metric ton for an undefined period.

The order to raise the oil export duty to $40 a ton from Jan. 1 is awaiting approval, the Astana-based Finance Ministry said in an e-mailed response to questions today.

The government’s order on the oil export tax, which also decreased duties on oil products, was published in the official Kazakhstanskaya Pravda and comes into force on Dec. 19.

Kazakhstan, the largest oil producer in Central Asia, began taxing crude exports in May 2008 to raise cash as global credit markets tightened. The export duty, which had been cut to zero in January 2009, was raised to $20 a ton in August for about 40 producers, including Chevron Corp.’s TengizChevroil LLP and BG Group Plc and Eni SpA-led Karachaganak Petroleum Operating BV, the country’s two biggest exporters. The list of taxed companies is set separately by the government.

In November, Kazakhstan’s government extended a ban on the export of gasoline and diesel until May 1.

http://www.bloomberg.com/news/2010-12-09/kazakhstan-prepares-to-double-oil-export-taxes-from-next-year.html

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