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Kyrgyzstan Review, 10 years ago




[24.01.23] "Black Gold" - the Bone of Contention

There has been an ongoing debate in Kyrgyzstan on the possible decrease of excise tax on oil products. The measure is aimed to root out smuggling of gasoline from the neighboring producer countries Uzbekistan and Kazakhstan. A special government commission is weighing up all the pros and cons of the action.
 
R. Brown, head of the big Kyrgyz-Canadian oil processing plant Kyrgyz Petroleum Company has commented on the situation:
 
- Lower excise tax on import of oil products will result in bankruptcy of the only oil processing plant in the country. About 2 thousand workers will go without jobs and money to feed their families. Bankruptcy of oil-processing plant will suspend oil production at both new and already developed oil fields. Betting on imported rather than domestically produced fuel the republic will completely lose its fuel-energy independence.
 
Oil-traders are the ones to put up the issue of lowering excise taxes on imported gasoline. They will greatly benefit from an improved import climate.
 
Rossiskaya Gazeta, January 24, 2003

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