Alterations in gasoline and diesel taxes Coordinate with Fuel Prices in Kazakhstan
Fuel Costs in Kazakhstan: A New Tax Regime Breakdown
Get the scoop on who pays what for gasoline, diesel, and more in Kazakhstan's revamped excise tax scheme.
The Ministry of National Economy has graced us with a decree that overhauls the way excise taxes are calculated on fuel products such as gasoline (excluding aviation), diesel fuel, gasohol, benzanol, neftas, light hydrocarbon mixtures, and eco-fuel. The decree can be found on the website of the Standard Control Bank of NPA RK.
Contrary to popular belief, the excise duties themselves remain unchanged. But don't worry, here's a rundown of the new rates!
Gasoline Rates:
- Wholesale by producers: 38,134 tenge;
- Wholesale by individuals and legal entities: 0 tenge;
- Retail by producers: 38,634 tenge;
- Retail by individuals and legal entities: 500 tenge;
- For imports: 38,134 tenge.
Diesel Fuel Rates:
- Wholesale by producers: 35,726 tenge;
- Wholesale by individuals and legal entities: 0 tenge;
- Retail by producers: 35,786 tenge;
- Retail by individuals and legal entities: 60 tenge;
- For imports: 35,726 tenge.
Other Fuel Types Rates:
- Wholesale by producers: 38,134 tenge;
- Wholesale by individuals and legal entities: 0 tenge;
- Retail by producers: 38,634 tenge;
- Retail by individuals and legal entities: 500 tenge;
- For imports: 38,134 tenge;
- Wholesale by producers of benzanol, if the fuel is made from taxed gasoline or domestic bioethanol: 3,000 tenge.
Moreover, the standard excise duties can now be tweaked. Some types of fuel will have their own "price threshold":
- For AI-92 and AI-93 gasoline, gasohol, benzanol, and other types of fuel: 214,584 tenge per ton;
- For diesel fuel: 284,350 tenge per ton.
These new tax rules will become effective 10 days after the official publication of the decree, which is scheduled for May 11 of this year.
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Now that we've got the rundown, let's dive deeper. Companies involved in manufacturing, importing, and distributing fuel products will be shouldering the burden of these taxes. This typically includes:
- Fuel Producers and Refineries: Industrial players that manufacture gasoline and diesel will be paying these taxes on their products.
- Fuel Importers: Businesses that bring gasoline and diesel into Kazakhstan will also be on the hook for these excise taxes.
- Fuel Distributors and Retailers: Companies that distribute and sell gasoline and diesel may transfer the costs of excise taxes to consumers, but they are often responsible for collecting and remitting these taxes to the state.
- Consumers: Indirectly, consumers will bear the cost of excise taxes through higher fuel prices at the pump.
Again, it's crucial to note that specific details about which entities are exempt or subject to special considerations under the new rules haven't been explicitly outlined in the available information. The aim of the decree is to modernize excise tax rates across various fuel types, impacting the wider fuel industry in Kazakhstan [1].
In Kazakhstan, the new tax regime on fuel products such as gasoline, diesel, gasohol, and others includes excise taxes for producers, importers, and retailers. For instance, gasoline importers will pay 38,134 tenge per unit, diesel fuel importers will pay 35,726 tenge per unit, and the excise duties for other fuel types remain the same at 38,134 tenge per unit. These taxes will affect companies involved in manufacturing, importing, and distributing fuel products, including fuel producers, importers, distributors, and retailers, possibly transferring the costs to consumers through higher fuel prices. Some fuel types, including AI-92 and AI-93 gasoline, gasohol, and diesel fuel, have price thresholds of 214,584 tenge per ton for gasoline and 284,350 tenge per ton for diesel fuel [1].
