Kazakhstan and Russia have reached agreement on the issue of taxation of export of Karachaganak gas condensate

Administration of the Western Kazakhstan region informed Kz-Today that the RK and the RF agreed to exempt from dual taxation the export of condensed gas from Karachaganak field.

Agreement is signed by Z.Kakimjanov, Minister of state revenues of the RK and A.Kudrin, Deputy Head of the Government of the RF. According to the agreement VAT from now on will be charged only in Kazakhstan.

As Kz-Today has informed earlier, on July 1, 2001 the rules on taxation between the RK and the RF have been changed. The sides shifted to charging VAT according to the principle of the "country of destination". Hereby there was agreed the list of goods which earlier fell under old principle of "the country of origin". However, due to that the condensed gas had not fallen under neither of the two principles, it was taxed both in Russia and Kazakhstan.

In this result early September Karachaganak enterprise was forced to suspend production of condensed gas at Karachaganak oil field for the product become more expensive.

It is supposed that in the nearest future, according to the latest agreement, production of gas at Karachaganak oil field would be resumed in full capacity.