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By Trend

The excess profits tax for mining companies maybe abolished in Kazakhstan, First Vice-Minister of the National Economy Ruslan Dalenov said while presenting the draft Tax Code to the parliamentarians in the Senate.

"Taking into account the world practice, it is proposed to abolish the excess profit tax for the mining industry with transferring the load to the rental tax on the export of coal," he said.

He mentioned that there is no such tax in the world practice for the mining sector.

"In fact, the tax is paid by the coal mining companies. Today, only the coal mining companies pay a tax on excess profits, so we suggest removing it, transferring it to a rent-tax," Dalenov said.

"if an investor sees that there is a tax on excess profits in the country, he can limit investment activity," he said adding that the excess profit tax for liquid hydrocarbons will be preserved," he said.

In the draft new Tax Code, which is designed to stimulate the growth of SMEs and strengthen the financial sector of the country, it is also proposed to abolish the commercial discovery bonus in order to stimulate successful exploration.

Also, within the framework of the new tax code, it is proposed to stimulate agrarians and abolish VAT for them.

Under the new code, all inaccuracies will be interpreted in favor of taxpayers.

In general, it is expected that with the adoption of Tax Code, tax disputes will decrease, the number of inspections will be reduced, and the tax policy will become clearer and more predictable.

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