Kazakhstan plans reforms to oil export tax

ALMATY, Sept 5 (Reuters) - The Kazakh government has proposed changes to its oil export tax from 2009 in a draft tax code published on Friday, but any savings for companies will not be enough to offset a new mineral extraction levy.

Overall, the government has said it wanted more taxes from the oil, mining and metals sectors to foster the development of other industries.

Under the proposed reforms the oil export tax will kick in when global oil price is $50 per barrel or higher, compared to a threshold of $19 currently.

The current tax band for oil exports ranges between 1 and 33 percent, with the highest rate applied when the global oil price is above than $40. The new tax code provides for rates between 7 and 32 percent, with the highest rate charged if oil prices are over $190 per barrel.

The government has said that revenues from the oil export tax have been small as most companies are exempt from it. Instead, it is looking on the planned mineral extraction tax as the key levy for the industry.

The mineral extraction tax would apply to a wider range of companies and provide only a discount, not at exemption, to those who sell oil on the domestic market.