Transition to new accounting control devices can make bankrupt the petroleum depots
NCE RK "Atameken" proposes to cancel or to extend the deadline for the installation of control devices
This issue was discussed at the regular meeting of the Committee of Oil and Gas Industry of the National Chamber of Entrepreneurs "Atameken", held under the chairmanship of a member of the Presidium of NCE RK Daniyar Abulgazin.
As you know, as of January 1, 2016 all oil depots in the country have to set up the control devices of the account. Meanwhile, in the opinion of the business community, the more detailed review and transition to the new systems of control devices takes time, and some legislative items require amendments and additions, as requirements for control devices, which were introduced in the summer of this year, set unreasonably high and, accordingly, entail significant financial costs for companies.
Moreover, it is impossible to ensure the transition to the new control devices within the established deadline (January 2016). These requirements have a negative impact on the production and financial situation of petrol depots and petrol stations. According to the National Chamber the mandatory installation and maintenance of control devices requires significant capital costs and long time. Thus these high requirements do not have the proper application in practice. "At the present time, such installation works will create an additional burden for the business segment, with unconfirmed effect for the state in the field of control and monitoring of the oil market", - noted NCE.
Rules for installation of control devices were approved only in June of this year, that is, four years after the adoption of the law "On state regulation of production and turnover of certain types of oil products." Thus, oil depots and refineries in the semi-annual period should go through the whole process of installation of the control device, which includes the development of the working project, which, in turn, must pass the state examination, as these facilities are high-risk; selection of contractors, construction and installation works, development and installation of software.
Meanwhile, the legislation provides for severe sanctions in case of non-compliance with the requirements of the Regulation. Thus, according to the Code of Administrative Offences, oil depots and refineries will incur heavy fines up to confiscation of petroleum products. In such a situation, the issue concerning the closure of tank farms and refineries can arise.
As it was noted at the meeting, during 2015 and up to now NCE RK "Atameken", Association "Kazenergy” and industry associations in cooperation with the competent authorities are working to finalize the rules and requirements for equipping tank farms with control devices.
"Resolving this issue would simplify matters for the control of oil turnover, taxation, pricing and reduce the risks of fuel shortages in Kazakhstan. At the same time the questions of postponement of installation of control devices, passage of state examination procedures for design and construction and installation operations, selection and installation of equipment for transmission of data to fiscal authorities of Kazakhstan and others are in the process of harmonization", - summarized the representatives of NCE.
Issues related to export customs duties on crude oil and heavy oil, as well as the introduction of offset policy in Kazakhstan were discussed at the meeting.
In the light of falling oil prices and a significant decrease in revenues of subsoil users, the tax burden on the oil sector is a crucial issue that needs to be solved. One of them is the binding rate of export customs duties to the price of oil and petroleum products with adjustment to changes in the world oil prices. One of the proposals made during the discussion of this topic was to provide a temporary period on the scale of ECD with the ability to review and to make changes in 2016. In addition, taking into account existing differences in taxation in Kazakhstan and the Russian Federation, which affects the pricing of petroleum products, it is necessary to pay special attention to changes in the supply system of taxation of oil on the domestic market in order to increase its profitability when working on the formation of the Joint Tax and Customs Code of the Republic of Kazakhstan.
The creation of new high-tech industries, which offset the introduction of planned policy in Kazakhstan is an important issue today. In this case, members of the committee believe that the new policy should not aggravate the situation for operating companies and enterprises.
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