Kazakhstan, holder of 3.2 percent of the world’s oil according to BP Plc, annulled its export duty on crude after it imposed a so-called rent tax for some producers under an overhaul of the taxation system.
The government order reducing the export duty to zero was published in the official Kazakhstanskaya Pravda newspaper on Dec. 27. It comes into effect 30 days after publication.
“All companies that pay the rent tax were excluded from the oil export duty from Dec. 24 in accordance with a government order,’’ Zhanel Kushukova, a department head with the Industry and Trade Ministry in Astana, said by telephone today. That government order wasn’t published in official media.
The BG Group Plc-led venture, Karachaganak Petroleum Operating BV, will pay the export duty until end of January and won’t pay any new tax in accordance with the terms of its production sharing agreement, Kushukova said. Gulnara Sharibayeva, a spokeswoman for Karachaganak Petroleum, declined to comment.
As part of a taxation overhaul this year, the Kazakh government introduced a quarterly rent tax. From Jan. 1, that imposes a sliding scale on crude and gas condensate sold overseas: the tax will be from 7 percent when the price of exported oil is $40 to $50 a barrel to a maximum of 32 percent should crude reach $180 to $200 a barrel.
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