Business proposes to cancel subscription fee for transfer of data from measurement devices of petroleum products

At regular meeting of the Committee for oil and gas industry of the executive panel of “Atameken” National chamber of entrepreneurs (NCE) of the Republic of Kazakhstan the issue was raised concerning subscription fee for transfer of data from measurement devices of petroleum products.

The operator, which ensures automated online transfer of data is NIT JSC. As of today subscription fee is 4150 KZT per month for one measurement device, – advises press service of “Atameken” NCE.

“This is a great burden on business. Business entities must bear constant and unjustified expenses so that state income authorities are able to receive necessary information through an intermediary”, – said chairman of  Kazakhstan fuel association – Bolat Auetayev.

According to his words “currently retail sellers of petroleum products are ready to pay for the services pertaining to provision of access to personal account of “E-sapa” information system for record of individual types of petroleum products. However “the amount of monthly subscription fee shall not exceed 1500 KZT for one fuel filling station similarly to subscription fee for transfer of data from cash-register machines”.

Around 4 thousands of fuel filling stations are operating in Kazakhstan, each of which has not less than 5 tanks. Retail sellers should pay for NIT JSC services about 1 billion of  KZT per year in total. For example, the cost of the service for PetroRetail LLP will be around 90 millions of KZT per year, Gelios LLP – 70 millions of KZT.

“This is a real burden on business, we have to raise this issue. When the fee was introduced the business incurred multi-million expenses on installation of measurement devices. It is more correctly to exclude payment for these services at all, indeed if the initiator of  measurement devices installation and data transfer is the authorized state body or government, then NIT JSC services shall be paid by the government not  by business entities”, – said chairman of the Committee for oil and gas industry of the executive panel of  “Atameken” NCE – Daniyar Abulgazin.

Since January 1st 2019 according to the law “On state regulation of production and turnover of  individual types of  petroleum products” the petroleum products shall be manufactured and sold with application of  measurement devices and online data transfer to the authorized body – Committee of state income with the Republic of  Kazakhstan Ministry of  Finance. This requirement allows the state authorities to increase tax deductions.

In the course of  the meeting also the issue was raised concerning local content development in purchases of  mineral resources exploiters. Official representative of the Republic of  Kazakhstan “Atameken” NCE for interaction with oil and gas operators (TCO, NCOC, KPO) and development of  petroleum service and secretary of  Council for development of  partnerships in oil and gas industry ( – Asylbek Dzhakiyev said about immediate problems of production localization. He stated that potential for release of  Kazakhstan goods able to replace imported products is very high. On the part of the state first of all the support is necessary in form of provision of tax privileges for manufacturers of local products. He also emphasized that only that enterprise shall be deemed as local goods manufacturer, in which 50% minimum belong to Kazakhstan citizens.