Economic sciences / 9.
Economy of industry
Doctor of Economics, professor Dinar R. Sikhimbayeva
Karaganda economic university, Kazakhstan
Natural rent in mining industry
The system of
payments for subsurface use for the present not fully corresponds to the
investment incomes created in subsurface use. To enter an effective payment for
use of raw material resources quite difficult. The existing acts regulating an
order of collection of a payment for using raw material resources, have no
binding to collection of a natural rent. Rent payments are raised in parts in a
type of tax on mining, a tax on excess profit, a rent tax, besides, some share
of rent payments – is withdrawn partially in the form of an excise on crude oil
and the customs duties. As a result of distribution investment incomes share
between various subjects of economy at various stages of process of production,
production, processing and realization of raw materials and then, are
distributed and appropriated partially by the companies subsoil users,
partially the companies realizing crude oil and other types of raw material
resources, and only some part of a differential rent arrives in the state
income in the form of existing taxes and payments [1], collectable payments
aren't coordinated among themselves on the sums of the absolute sizes, the
mechanism of the directions of their use isn't fulfilled fully.
Mechanisms of
formation, accumulation and investment of assets of National fund demand
improvement of all system of collection, distribution and an order of use of
rent payments.
Over 2/3 of
republic GDP are reached due to preservation of high prices of oil and other
raw materials making a basis of the Kazakhstan export [2]. That over the last
10 years in structure of industrial production of the republic the share of
production of raw sector by the enterprises in recent years makes about 40% of
production volume in general, can draw conclusions that a share of tax revenues
from a mineral and raw complex in the general tax revenues of the country it is
still small.
In many countries
tax revenues from the nature operating sectors, in particular from an oil and
gas complex, make to 80% of all income of the budget, in our opinion, the
subsurface use share in revenues of the budget of our republic can and has to
be step by step increased. For implementation of this cardinally important task
it is necessary to change first of all the concept of the taxation of
subsurface use which strategy of improvement is the increase in a payment for
subsurface use in structure of revenues of the budget due to modification of
system of the special taxation of the extracting companies. In this regard it
is important to develop effective system of payments for subsurface use for
conditions of the Kazakhstan economy which could solve a problem of
replenishment of the budget and ensuring financing of actions for protection
and reproduction of raw material resources and many other major social and
economic problems in the conditions of the market, being at the same time a
component of tax system.
The most
important problem of Kazakhstan for the next years is use of investment incomes
from oil and other raw sectors of economy for creation of stability and
sustainable long-term economic development. It demands improvement of quality
of management by subsurface extracting branches and creation on this basis of
favorable conditions for lifting and development of non-oil sectors of economy,
especially processing industries with a high share of a value added. Functional
ability of the state and efficiency of its activity is estimated on as far as
it within the constitutional state and legality provides and protects national
interests, meeting thus conditions of contracts. With transition to market
economy in the republic raw material resources of the republic, in this
connection the main task facing the republic – increase of efficiency of
mechanisms of formation, accumulations and investments of assets of National
fund which replenish thanks to available of the natural rent appeared the
greatest demand in the world market mainly.
At the present time
development and improvement of the rent relations in a mineral and raw complex
of Kazakhstan which is the most important resource component of national
economy, gains the increasing relevance. This process mentions all spheres of
the state and therefore can't take place out of a context of development of the
market transformations which are occurring lately, and also in a separation
from strategy of development of the republic for the period till 2030. State
regulation of these economic processes is urged to protect interests of people.
The importance of
state regulation confirms that fact that the modern trends of economic science
of the USA and Great Britain in subsurface use allocate three rent factors: two
classical – location and quality, and the third factor - a state policy.
Allocation of a state policy of the factors, based on experience of these
countries, is connected with influence of state regulation of subsurface use on
the volume of the investment income gained from a mining industry, that is
confirms dependence of growth of rent on efficiency of public administration
[2].
Search and
acceptance of new compromise option of development of extracting sector of the
country which isn't striking the rights both economic interests and the states
and subsoil users is necessary for the solution of many social and economic
problems in Kazakhstan. It has to influence growth of efficiency of all economy
of the republic as from further industrial development of the republic,
including in raw branches, economic security of the country depends. The
concept of development of a mineral and raw complex has to be based on increase
of efficiency of functioning of extracting sector of Kazakhstan, including
rational use of raw material resources at decrease in costs of production, and
the direction of a withdrawn natural rent on social and economic development of
the country, including rising of its scientific and technical potential by an
investment of investments into processing industries, and also development of
technical base of the most mineral and raw complex.
In spite of the
fact that lately Kazakhstan gained a certain experience of work with foreign
investors which, despite some defects at the initial stages of activity, allows
to continue mutually beneficial cooperation, state regulation of subsurface use
demands further development. Being one of the parties of the contractual
relations with the foreign companies, Government is the representative of
administrative functions on behalf of the people power, that is has to ensure
economic and political security of the country. For protection of national
interests, preservation and strengthening of industry, Government has to
exercise control of a use of economy of the republic.
Improvement of
the rent mechanism of the taxation it is necessary to consider that the
favorable investment climate creates opportunities for additional sources of
investment in mineral and raw sector, that means increasing of its
capitalization by attraction of resources of large domestic and foreign
investors. Growth of the taxation in raw branches will decrease an investment,
especially, in not oil spheres of the mining industry.
The solution of
objectives has to be connected with the following actions:
- reorganization of system of the taxation with increasing
of rent component;
- creation of economic conditions for increase of
processing in a mineral and raw complex of the country on the basis of increase
of a natural rent.
References:
1 Hotelling H. The Economics of Exhaustible
Resources // Journal of Political Economy. – 1931. – Vol.39, ¹2. – P.137–175.
2 Tietenberg T. Environmental and Natural
Resource Economics. Glenview, Illinois – London: Scott, Forestman and Company,
1984. – 591 p.