Digression Factor Of Mineral Extraction Tax On Deep Deposits Of Solid Minerals May Be Introduced In Kazakhstan

Digression Factor Of Mineral Extraction Tax On Deep Deposits Of Solid Minerals May Be Introduced In Kazakhstan

Digression factor of the mineral extraction tax for deep deposits of solid minerals can be introduced in Kazakhstan within the framework of the new Tax Code, said Timur Suleimenov, Minister of National Economy.

“On solid minerals, deep mines, where they face a decision to stop production, because there is completely different level of costs, a different level of technologies, although there are still reserves … They can stop and say: no, let it remain underground, until new technologies appear or the financial situation changes, ” he said at the meeting with population.

“In order to stimulate the maximum development and extraction of minerals, we are ready to consider a digression factor for the mineral extraction tax … Now we are considering the coefficient of 0.5 or 0.7,” he added.

At the same time the tax will be lowered for deep, super deep oil fields.

“In the oil industry the regime will be different where there are over 6000 meters, or offshore projects in the Caspian, there will be no MET, no commercial discovery bonus, etc., there will be a tax on the financial result. That is, a company invests, drills a well and only after it starts to receive income, it starts to be taxed. In addition to corporate income tax, there will be an additional tax on the financial result, that is, we will take our money, but we will not take the money from the investor immediately, ” said the Minister.

Share