Evgeniy Bolgert: "We need to exempt geological exploration from the VAT"
NCE is actively involved in the work on the Code on Subsoil Use
A group of employees of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" went to Australia to study the experience in the sphere of subsoil use. A meeting with the relevant state bodies and entrepreneurs took place at the site of NCE RK after the study trip.
"As we implement the Australian model for regulation of subsoil use, we decided with colleagues from the industry - associations and various institutions, the ministry to visit the and to study at the spot all the specific issues that we need now to introduce in the code. We hope that next September the document will go to the Mazhilis. In January we will begin work on the text - proofreading, discussion of some controversial issues", - said the executive secretary of NCE RK "Atameken" Eugeniy Bolgert.
According to him, Kazakhstani subsoil users are mostly concerned by the land issues. "It happens so that the subsoil use right is not the same as the land use right. That is, you own the land, you are a private owner, and I have a contract for subsoil use. And you don’t let me to their territory. There is a conflict of interests. We have a lot of problems associated with this in Kazakhstan, because, in fact, the landlord my not even use the land plot for its intended purpose, but since he is the owner, he can just ignore the subsoil user, exposing unreasonable financial conditions. In Australia, the priority is given to negotiations. That is everything is based on the fact that the subsoil user is diligent and a land user is conscientious. And they must agree. If not, there is a mechanism in the legislation on judicial resolution of this situation", - said the executive secretary.
Bolgert also said that NCE is working now on cooperation in the sphere of subsoil use. "Because the supplier of mining and oil and gas equipment must understand what are the requirements for the equipment which he would like to deliver. If it somehow does not meet the parameters, it does not mean that it can be simply pushed aside. He needs to explain the requirements in a clear manner, and if he is willing to develop, to invest, then no one will interfere",- said the representative of NCE.
"There are aspects that are associated with the stimulation of exploration. In Australia the tax system and the budget process stipulate a compensation for expenses incurred by the company in exploration, provided that they did not find anything. The Government allocates at least 300 million Australian dollars every year for this purpose. As a rule, if one of the 10 exploration projects succeeds, it's very good. That is, the compensation - it's a serious tool to attract investment in exploration, which reduces the risks ", - he said.
According to Bolgert, NCE offers to exempt geological exploration from the value added tax, as well as get cancel strict regulation of the procurement process of the subsoil users. "They just need to be told that for some time they have to comply with the requirements of local content, but do not tell them how they should conduct the procurement. There is no need to regulate each step as it is done, as it is worse than the state procurement”, - he stressed.
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