Conference on taxation of subsoil users

Astana, 26 July 2008 (Khabar) - Kazakhstan must improve taxation of subsoil users. Daulet Yergozhain, Vice Minister of Finances said taxation of most large tax payers is at the level of 1997 and this must be changed. Oil prices have increased during 10 years but the taxes for sub soil users are not high. Besides, large companies evade from paying taxes via transfer price forming and damage the country's budget very much. Daulet Yergozhain noted during first six months of 2008 the large sub soil users didn't pay over 15 billion tenge of taxes and fines. The average world share of state in projects of sub soil using is 70%, and in Kazakhstan - less than 25%. Export duty in RK is three times less than in neighboring Russia. During 2 last year the republic' budget didn't receive over 200 billion tenge from large investor-companies because of imperfect national legislation ontaxation.

Daulet Yergozhain, Vice Minister of Finances of RK: - Taxation load onto sub soil users doesn't answer the world practice,Kazakhsatni system of rights, Constitutional principles of equality before the law. And such situation is in admissible. And this must be corrected with the help of law changes and using of advanced experience of right-using practice.

Vice Minister of Finances said the government ended to calculate rates of tax on extraction of all types of metal. Now they count all the metallurgists to define approximate number of whole sphere. And issue on rates for low-income deposits will be discussed separately.