The mineral extraction tax in Kazakhstan's oil sector comprises over 70% of all environmental taxes, according to Aigul Mukhamadiyeva, Managing Director and Head of the Directorate of Natural Resources and Agriculture of the Eurasian Development Bank (EDB). This statement was made during the session "The EDB’s Investment Instruments: Results and Prospects" at the EDB Annual Meeting and Business Forum in Almaty.
Mukhamadiyeva highlighted that the natural resources sector and agro-industrial complex form a significant portion of the GDP of the Bank's member countries. In both Kazakhstan and Russia, the mining and mineral processing sector is a crucial contributor to GDP, tax revenues, and economic growth. In Kazakhstan specifically, the mineral extraction tax from the oil sector represents more than 70% of all environmental taxes, while mining outside the oil sector accounts for over 14% of environmental taxes.
"The analytics indicate that the natural resources sector and agro-industrial complex occupy a significant part of the GDP of the Bank's member countries. In Kazakhstan and Russia, the mining and mineral processing sector not only has a significant share of GDP but is also a key source of tax revenues as well as an important factor in the economic growth of the countries. In particular, in Kazakhstan, the mineral extraction tax in the oil sector accounts for more than 70% of all environmental taxes. At the same time, taxes from mining outside the oil sector account for more than 14% of all environmental taxes. This is a significant amount," Mukhamadiyeva noted.
Mukhamadiyeva also pointed out the substantial contribution of mineral extraction and processing to the economy of Kyrgyzstan. In 2023, the share of minerals in Kyrgyzstan's total industrial production exceeded 11%. Although Armenia, Belarus, and Tajikistan have relatively lower indicators for the volume of mining and processing of minerals in their GDP, the industry remains vital to their economies.
The final day of the EDB Annual Meeting and Business Forum in Almaty included three panel sessions and the presentation of the study "Water and Sanitation in Central Asia."
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