Kazakhstan Discusses the Introduction of Export Duties on Grain and Oilseed Crops

Kazakhstan discussed the possibility of introducing export duties on grain and oilseed crops. The Ministry of Finance's initiative was discussed at the Atameken National Chamber of Entrepreneurs (NCE) with the participation of business representatives and relevant industry associations.

According to the Kazakhstan Grain Union, the Ministry of Finance's proposal calls for an export duty of $30 per ton on grain crops, including wheat and barley. For oilseeds, including flaxseed and rapeseed, a rate of 20% of the customs value, but no less than €50 per ton, is proposed.

The Ministry of Finance believes that the introduction of duties will increase budget revenues and stimulate the development of domestic processing of agricultural products.

However, representatives of the agricultural business community opposed the initiative. According to Yevgeny Karabanov, head of the Kazakhstan Grain Union's Analytics Committee, the additional fiscal burden could lead to a decrease in agricultural producers' income and exacerbate existing problems in the industry.

He recalled that similar consequences had previously been observed following amendments to the Tax Code regarding VAT refunds on agricultural exports, as well as the introduction of duties on sunflower seeds.

Following the discussion, participants were asked to submit additional calculations and economic justifications for the initiative under consideration.

The Grain Union also noted that discussions on the possible introduction of export duties have already increased uncertainty in Kazakhstan's domestic grain and oilseed markets.