Kazakhstan wants to introduce tax on metal export

/REUTERS, Astana, Raushan Nurshaeva, April 18,.08/ - Kazakhstan wants to introduce tax on all products of mining and smelting complex, what caused indignation of the hugest export companies. "Till the end of April we will determine with figure (the price of custom tax). I think, that in any case it must be lower than for oilman" - said vice minister of finance Daulet Ergozhin to newsperson in the lobby of metallurgic conference in Astana. "The level of economic efficiency exceed in some productions in 25%. We consider that it will be fare to have internal limit of economic efficiency - 20- 22%" - he added. In the letter to the Government, the copy of which Reuters has,16 hugest mining and smelting companies call plans on tax introducing "is barrier on the way of Kazakhstan products to foreign markets" and apprehend that this step restrain Kazakhstan entering WTO. The president Nursultan Nazarbayev in February message to nation said that it is necessary to increase tax obligation on extracting sector with the aim to develop processing one. "THERE IS NOTHING TO WORRY" "We consider that increase of level of tax obligation in separate spheres of economic should be examined within the limits of new Internal Revenue Code. We should introduce new Internal Revenue Code for interior usage, but not taking discriminatory measures in trade concerning Kazakhstan export" - metallurgists write. "We think that considerable calculation of consequences were not made, as it can seriously damage real sector and contiguous with it spheres. From the position of investment borrowing, the realization of break-through projects will be under threat, as they have export character" - is said in the letter. But bleak forecast of metallurgists didn't confuse vice minister of finance. "There is nothing to worry about, i.e it is wrong to tell about tragedy, that mining and smelting sphere will stop on this" - said Ergozhin. "What they said is all for nothing...there is normal calculation, also as on oil taxes was" - said Ergozhin. However after news of Government plans, shares of hugest Kazakhstan exporters decreased significantly: quotation of copper corporation KazakhMys in London decreased by 7.2%, shares of metallurgical giant Eurasian Natural Resources by 6.5%. Another huge player on this market is ArcelorMittal, producer of steel, which quotations still didn't decline. INDIVIDUAL APPROACH According to data of Association of mining and mining and smelting enterprisers, the Government intends to introduce export tax in 10.0% practically on all types of metal, produced in Kazakhstan. But both Ergozhin and ministry of industry Vladimir Shkolnik didn't support this information. "Here should be balanced approach to every situation. It can't be of the same kind, under one 5 or 10% tax - specialists say about it. We will discuss this question with them further" - said Shkolnik to newsperson in the lobby of Government. Kazakhstan in May will introduce custom export taxes on oil in amount of $109.91 per ton and has already prohibited wheat export till September 1, explaining it as a necessity of inflation struggle and home market protection. [2008-04-18]