Code “On taxes and other obligatory payments to the budget” (Tax Code) dated December 25, 2017 № 120-VI.

The Code establishes the fundamental principles of taxation and other mandatory payments to the budget. 

Article 573 defines that the payment for the negative impact on the environment charged for emissions and discharges of pollutants (emissions into the environment).  In accordance with article 574, the payers of the payment are the operators of the category I, II and III facilities that have a negative impact on the environment. 

Article 576 of the Tax Code defines the rates of payment for emissions into the environment. Methane is one of the types of pollutants for which the rate of payment for emissions from stationary sources is set. The rate for emissions of 1 ton of methane from stationary sources is 0.01 MCI (minimum calculated index, MCI for 2022 = 3063 tenge). The rate of payment for emissions of 1 ton of methane = 30.53 tenge or 0.07 US dollars (according to the official exchange rate on 18.01.2022). Starting from January 1, 2025, the rate of payment for emissions of 1 ton of methane will be increased to 0.02 MCI. 

In addition, Article 576 defines the rates of payment for emissions of pollutants from the combustion of associated and/or natural gas in flares. Thus, the rates of payment for methane emissions during associated flaring are 0.8 MCI per 1 ton = 2450.4 tenge or 5.64 US dollars per 1 ton.  

Article 577 defines the procedure for calculating and paying for the negative impact on the environment. In order to stimulate the introduction and application of the best available techniques (BAT) for facilities that have a negative impact on the environment and that have received an integrated environmental permit, payers apply a coefficient of 0 to the rates of payment for emissions (the payments are zeroed). 
 
Under Article 43-9 of the related Law dated December 25, 2017 No. 121-VI ZRK, fees are scaled based on a number of factors, including: 
-          Category of enterprise (depends on the amount of emissions); 
-          Specific exemptions for utilities and power plants and other enterprises; 
-          Use of integrated environmental permit (IEP); 
-          Enterprises included in the top 50 polluters (in terms of sum of emissions). 

Want to know more about this policy ? Learn more