Kazakh president calls for tax breaks to develop mineral deposits

ASTANA. April 19 (Interfax) - Kazakh President Kassym-Jomart Tokayev has proposed introducing tax breaks to develop solid mineral deposits.

"In Kazakhstan, there are many deposits of solid minerals the development of which is economically unfeasible given the existing taxation system. The minerals continue staying under the ground, very often very close to mono-cities, though they might benefit the people," Tokayev said at an expanded meeting of the government on Wednesday on social and economic development.

"Following the example of the oil and gas projects, we could ease the tax burden for such unprofitable deposits, which would help us create new jobs, build processing facilities and fulfill the social obligations," the president said.

He said the tax breaks should be mainly aimed at attracting investment in the production of high value-added products and stimulating non-commodity exports.

"I would like everyone to understand what I mean: our economic policy needs to solely serve the cause of economic diversification and industrialization and the attraction of investment in the end. The local authorities of all levels should keep in mind all the time that they need to attract investment and create jobs, and the central government should help them achieve these goals," Tokayev said.