Majilis Approves Tax Breaks for MAEK to Support Modernization

At its plenary session, the Majilis approved amendments to the Tax Code in two readings that introduce tax incentives for municipally owned energy enterprises — including the Mangystau Power Plant (MAEK), Orda.kz reports.

MAEK remains the primary source of electricity for the Mangystau region and the sole producer of heat and water for Aqtau. Lawmakers noted that the enterprise, founded in 1968 and now owned by the regional akimat, operates with severely worn-out equipment requiring large-scale investment.

Much of the equipment is in critical condition and requires significant capital investment for restoration and modernization. To maintain production capacity from 2024 to 2030, a 177.2 billion tenge modernization program is planned, aimed at reducing depreciation and improving production efficiency,
 the deputy said.

Under the amendments, subsidies from budget reserves, grants, and other forms of gratuitous assistance will no longer be treated as taxable income for energy producers that are fully state or municipally owned and simultaneously generate electricity, heat, and water — criteria that apply directly to MAEK.

The bill’s drafters say the reform will not create socioeconomic or legal risks, though it will reduce state revenue. The government supported the measures for this reason.

The legislation has been adopted by the Majilis and forwarded to the Senate.

MAEK has drawn heightened attention after a July 17 incident left Aqtau without electricity for several days, prompting widespread complaints and even road blockages by residents.

Original Author: Anastasia Prilepskaya