Kazakhstan has decided to lift export customs duties on agricultural hides and wool for the next three years. This move was approved by the Interagency Commission on Trade Policy and Participation in International Economic Organizations.
The decision was mainly driven by low domestic demand for these raw materials. Right now, the processing and exporting of agricultural hides and wool are still at low levels across the country.
The government believes that by removing the duties, it can help farmers and producers reduce losses and lower the cost of disposing of unused materials.
Removing export taxes will also allow cattle and sheep farmers to build stronger production and marketing chains.
It could open up new sales markets and give domestic producers and exporters a better edge in the international market.
Currently, Kazakhstan charges 200 euros per tonne on cattle and sheep hides exports.
For wool, there is a 10% duty, but it cannot be less than 50 euros per tonne. These fees have made it harder for local farmers to compete globally.
The Agriculture Ministry said it will keep a close watch on the market and take quick action if needed.
