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Transparency of oil revenues holds the key to industrial success, Almaty seminar hears
ALMATY 24 November 2003
ALMATY, 24 November 2003 - Participants at a roundtable in Kazakhstan, co-organized by the OSCE Centre in Almaty, discussed the importance of transparency of contracts in the taxation of oil operations, the country's biggest revenue service.
The event was aimed at developing a set of recommendations on upgrading taxation policies for the extractive industries in Kazakhstan.
Members of the Mazhilis (Lower Chamber of Parliament), representatives of extractive companies, international and non-governmental organizations, the British Government, as well as foreign and local experts took part in the discussions.
The focus of discussion was the draft law on draft law on amendments and supplements to legislative acts on taxation issues, currently before Parliament and planned to come into force early next year. This bill stipulates, among other things, greater transparency of contracts.
However, according to the draft law, transparency will be stipulated only for contracts with small investors. Old contracts with oil companies, information on which is closed, cannot be re-negotiated. New contracts between the government and large international companies will also be concluded on an individual basis and will be closed to the general public as well.
During the debate, oil company representatives suggested that discussions of draft legislation concerning their activities should involve them, to reflect the views of major stakeholders. Members of Parliament, on the other hand, said information on oil companies was not always easily accessible, which prevents those involved in drafting laws from receiving a fuller picture.
Participants also discussed ways of involving Kazakhstan in the "Extractive Industries Transparency Initiative", promoted by British Prime Minister Tony Blair.
A British Government representative said he noticed in his private discussions with participants that their positions and ultimate goals were quite similar to each other, and in order to be successful, stakeholders should find this common ground and unite.
"If you plan to be in business over the long term, you should address transparency right from the start," said the Political Counsellor of the British Embassy in Almaty, Sefton Darby.
The event was part of a larger project, entitled, "Extractive Industries Revenue Watch in Kazakhstan" - a two-year initiative launched in August 2003 by the OSCE Centre in Almaty, Public Policy Research Centre, Open Society Institute/New York, Local Government and Public Service Reform Initiative/Budapest, Soros Foundation/Kazakhstan and the British Embassy in Almaty.
The ultimate goal of the initiative is to increase transparency and public participation in decision-making in the area of oil extraction, which accounts for the largest share of revenues in Kazakhstan.
The event was aimed at developing a set of recommendations on upgrading taxation policies for the extractive industries in Kazakhstan.
Members of the Mazhilis (Lower Chamber of Parliament), representatives of extractive companies, international and non-governmental organizations, the British Government, as well as foreign and local experts took part in the discussions.
The focus of discussion was the draft law on draft law on amendments and supplements to legislative acts on taxation issues, currently before Parliament and planned to come into force early next year. This bill stipulates, among other things, greater transparency of contracts.
However, according to the draft law, transparency will be stipulated only for contracts with small investors. Old contracts with oil companies, information on which is closed, cannot be re-negotiated. New contracts between the government and large international companies will also be concluded on an individual basis and will be closed to the general public as well.
During the debate, oil company representatives suggested that discussions of draft legislation concerning their activities should involve them, to reflect the views of major stakeholders. Members of Parliament, on the other hand, said information on oil companies was not always easily accessible, which prevents those involved in drafting laws from receiving a fuller picture.
Participants also discussed ways of involving Kazakhstan in the "Extractive Industries Transparency Initiative", promoted by British Prime Minister Tony Blair.
A British Government representative said he noticed in his private discussions with participants that their positions and ultimate goals were quite similar to each other, and in order to be successful, stakeholders should find this common ground and unite.
"If you plan to be in business over the long term, you should address transparency right from the start," said the Political Counsellor of the British Embassy in Almaty, Sefton Darby.
The event was part of a larger project, entitled, "Extractive Industries Revenue Watch in Kazakhstan" - a two-year initiative launched in August 2003 by the OSCE Centre in Almaty, Public Policy Research Centre, Open Society Institute/New York, Local Government and Public Service Reform Initiative/Budapest, Soros Foundation/Kazakhstan and the British Embassy in Almaty.
The ultimate goal of the initiative is to increase transparency and public participation in decision-making in the area of oil extraction, which accounts for the largest share of revenues in Kazakhstan.