Summary Kazakhstan plans selective mining tax increasesWants to raise VAT rates, cut fuel subsidiesWill borrow to finance China-EU shipping route bypassing RussiaASTANA, June 9 (Reuters) - Kazakhstan plans to raise taxes on mining companies and cut fuel subsidies to balance its budget, while borrowing to develop the shipping route between China and Europe bypassing Russia, Economy Minister Alibek Kuantyrov told Reuters.
Kazakhstan has already hiked the mineral extraction tax rate for exchange-traded metals by 50% and other solid minerals by 30% this year, but Kuantyrov said there was room for further increases in the new tax code the cabinet is drafting.
"Our minerals extraction tax rates are among the lowest in the world," he said in an interview.
The government also wants to raise the VAT rate for most sectors from the current 12%, while cutting it for "socially important" ones such as food staples and medicines.
The government wants to tax banks more heavily and will continue cutting car fuel subsidies, a move announced earlier this year.
Persons:
Alibek Kuantyrov, Kassym, Jomart Tokayev, Kuantyrov, Mariya Gordeyeva, Tamara Vaal, Olzhas Auyezov, Toby Chopra, Kim Coghill
Organizations:
EU, Russia ASTANA, Reuters, RUSSIA Kazakhstan, European Bank for Reconstruction, European, Thomson
Locations:
Kazakhstan, China, Europe, Russia, Ukraine, Soviet, Caucasus, Moscow, Central Asia