Kazakhstan enacts zero rate on oil export in January 2009

/REUTERS, Almaty, December 29, 08/ - Kazakhstan nulls rate on oil export duty since January 26, 2009, but not reject it, the source in the Government informed Reuters. "The rate on oil export custom duty will make zero per cents" the source said. "The crude oil as the tax base is not cancelled (i. e the rate will be revised in future)" - he added. According to the message, released in Kazakhstanskaya Pravda, the head of the Government Karim Masimov signed the document "On including changes and additions into the Resolution of the Governemnt of the republic of Kazakhstan, dated October 15, 2005 "On collection of custom duties while exporting crude oil and oil products from the territory of republic of Kazakhstan", in which the word "crude oil" is excluded from the item 1 of the current Resolution. Earlier, the Government said that it will reduce the current oil export duty to $139.8 per ton from $203.8 per ton since January 21, 2009. Oil export duty was enacted in May 2008 for 38 companies, working on Kazakhstan territory in amount of $109.91 per ton. Among them - half state Exploration Production KazMunaiGaz and also some smaller companies. In July, the Government expanded the list and imposed duty on the projects of LUKOIL, Eni, BG and Chevron. At the same time, Kazakhstan announced on tax reform in 2008. The new Tax Code is supposed to be effective on January 1, 2009, in compliance with which, authorities for the first time will establish the tax on minerals production. Kazakhstan plans to produce about 70 m. tons of oil this year. In 2009, according to authorities` forecast, production volumes will remain at the level of 2008. [2008-12-30]