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2008 April 18   13:35

Kazakhstan planning to introduce export duty on metals

The Kazakh government will determine the size of an export duty that is to be introduced on mining and metals products  before the end of April, Kazakh Deputy Finance Minister Daulet Yergozhin said in Astana on Friday according to Interfax.

"An   export   duty   on   metal  commodities  is  currently  being calculated," he said, noting that the Kazakh Industry and Trade Ministry is handling the calculations.

Yergozhin  did  not  specify what types of metals products would be subject to the new export duty.

The  introduction of an export duty on metals will be considered in conjunction  with  other taxes, in particular, the corporate income tax, whose rate could be lowered once a new Tax Code is approved.

Yergozhin  said the export duty on metals commodities would be less than the oil export duty that is to come in effect on May 17.

Nikolai  Radostovets,  executive  director  of  Kazakhstan's Mining Metal Companies Association, said the companies view the introduction of the export  duty  as  "a  hindrance  to  the  competitiveness  of  their products."

"This  is a barrier that will hinder the development of the Customs Union and  could  even  contradict  it,"  he  said.  A resolution on the customs  duty  on  metals could be adopted at the President's Council of Economic Policy in a few days, he said.

"We are ready to give more to the country, but within the framework of a civilized taxation system," Radostovets said.

Industry   and  Trade  Minister  Vladimir  Shkolnik  called  for  a diversified  approach  to  calculating  the  customs duty for each metal product.

"There  should  be  a balanced approach to each product. Obviously, there won't  be  a  fixed  10%  or 5% duty for all. We will discuss this issue further," he told journalists later today in Astana.

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