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Akim of Mangistau region proposed to lower taxes for oil companies in the region

March 18 2015, 10:00

Alik Aidarbayev, akim of Mangistau regionAlik Aidarbayev, akim of Mangistau regionAlik Aidarbayev, akim of Mangistau region, proposed to lower the tax rates for oil companies of the region.

He made the statement at the session involving Timur Kulibayev, chairman of presidium of the national business chamber of Kazakhstan.
"The Government decided to lower the fees of export customs fee from 80 to 60 US dollars per ton since March 1 2015. According to the calculations of subsoil users, this measure will not help the companies to overcome the break even point, thus, it may lead to redundancy, reduction of orders for service companies. The elementary proportion shows, if oil price in dollars falls to 60 dollars, reduction of export customs fee makes only 2 dollars," he said.
In his words, today all the companies have recalculated their budgets taking in account revised export customs fee, bringing their profit to zero.
"You should note that the volume of works in the budgets of the companies and contractors are calculated in average for 6 months. For example, Ozenmunaygas will finish the drilling volumes in March, the works are planned until July-August in the service group Mangistaumunaygas. Due to this, the service companies have warned the employees about possible reduction of staff. Such reduction of fee does not bring any effect. Today almost all the companies propose to reduce the ECF to zero," he added.

Source:  KazTAG

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