Kazakhstsn not to increase VAT vats - Prime Minister Bektenov

The results of socio-economic development and the execution of the republican budget for January 2024 were considered at a meeting of the Government of Kazakhstan, El.kz reports with reference to the press service of the Government.

Prime Minister Olzhas Bektenov stressed that the priority task of the Government for the current year and the medium term remains to ensure stable economic growth at the level of at least 6%.

"I instruct the Ministry of National Economy, together with sectoral government agencies, to develop and approve a plan of priority actions to ensure economic growth at the level of 6% this year within a month. It should contain concrete and effective measures," the head of government said.

At the same time, Olzhas Bektenov drew attention to the fact that the growth of investments in fixed assets in January amounted to only 0.6%. In his opinion, such a low figure indicates the poor quality of work of authorized state bodies and akimats.

"It is necessary to strengthen the activities of the Investment Headquarters, which has been endowed with sufficient powers. The primary task of ministers and akims is to provide effective and efficient support for the implementation of investment projects," the Prime Minister said.

Another important factor in a successful economy is a strong and competitive business. Therefore, the development and support of entrepreneurship is one of the main tasks of the Government.

The priority should be high redistribution, as well as the export potential of products. Financial support should be provided proportionately depending on the level of technological complexity of production. That is, the more complex the production and the more technologically advanced, the lower the loan rate or the longer the loan term," the Prime Minister said.

This year, the task is to keep inflation in the range of 6-8%. To do this, government agencies must ensure high-quality implementation of the Set of Measures to Control and Reduce Inflation.

"At the extended  meeting, the Head of State noted that last year VAT in the amount of about 600 billion tenge was not returned to business. At the same time, the budget was advanced with payments for 2024 to finance urgent expenses. These are the results of improper planning, the income plan for 2023 was overestimated. This practice should not be repeated," the Prime Minister stressed.

At the same time, he added that there will be no increase in VAT.

"On behalf of the Head of State, there will be no increase in the value added tax rate. We must look for other ways to replenish the revenue side of the budget. The Ministries of National Economy and Finance need to ensure high-quality planning of both the expenditure and revenue parts of the republican budget.

It is important to take effective measures to improve tax and customs administration, primarily through digitalization," said Olzhas Bektenov.

According to the Prime Minister, it is important to strengthen financial discipline, eliminate unproductive expenditures and increase the efficiency of state budget expenditures as a whole.

"I want to emphasize once again that we should make every effort to ensure a high rate of economic growth. Each minister and akim of the region is personally responsible for achieving the goals set," he concluded.

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