2001, but decreased to 16.2% of GDP in 2003. In 2000, Kazakhstan adopted a new tax code in an effort to consolidate these gains.
On November 29, 2003, the Law on Changes to Tax Code which reduced tax rates was adopted. The value added tax fell from 16% to 15%, the social tax, from 21% to 20%, and the personal income tax, from 30% to 20%. On July 7, 2006, the personal income tax was reduced even further to a flat rate of 5% for personal income in the form of dividends and 10% for other personal income. Kazakhstan furthered its reforms by adopting a new land code on June 20, 2003, and a new customs code on April 5, 2003.
Energy is the leading economic sector. Production of crude oil and natural gas condensate from the oil and gas basins of Kazakhstan amounted to 51.2 million tons in 2003, up 8.6% from the production in 2002. Kazakhstan raised oil and gas condensate exports to 44.3 million tons in 2003, 13% higher than in 2002. Gas production in Kazakhstan in 2003 amounted to 13.9 billion cubic meters (491 billion cu. ft), up 22.7% compared to 2002, including natural gas production of 7.3 billion cubic meters (258 billion cu. ft).
Kazakhstan holds about 4 billion tons of proven recoverable oil reserves and 2,000 cubic kilometers (480 cu mi) of gas. According to industry analysts, expansion of oil production and the development of new fields will enable the country to produce as much as 3 million barrels (480,000 m) per day by 2015, and Kazakhstan would be among the top 10 oil-producing nations in the world. Kazakhstan's oil exports in 2003 were valued at more than $7 billion, representing 65% of overall exports and 24% of the GDP. Major oil and gas fields and recoverable oil reserves are Tengiz with 7 billion barrels (1.1×10 m); Karachaganak with 8 billion barrels (1.3×10 m) and 1,350 km³ of natural gas); and Kashagan with 7 to 9 billion barrels (1.4×10 m).
Kazakhstan instituted an ambitious pension reform program in 1998. As of January
