New measures to support domestic commodity producers allows to increase contracts with Kazakhstani enterprises by 58%
During the Government session, where the issues of support for domestic producers were considered, the Minister of Finance of the Republic of Kazakhstan Madi Takiyev reported on the measures taken in the field of regulated procurement, El.kz cites primeminister.kz.
In order to promptly expand the list of goods, works and services exempted from the national regime this year at the legislative level was excluded the requirement to analyse the regulatory impact when establishing exemptions. This allowed to expand the list from 1,380 to 4,542 items of goods.
"In the first 7 months of this year, 34,805 contracts were concluded with domestic producers, which is 58.1 per cent more than in the same period last year. The rules of cameral control of the Ministry of Finance are supplemented with a new risk profile. Now the results of purchases in which foreign goods are purchased instead of domestic ones are cancelled by the state audit bodies. In total, since April this year cancelled 8 purchases worth 25 million tenge," Takiyev reported.
In addition, amendments have been made to the current Rules of public procurement and quasi-public sector procurement, which provide for:
- priority purchase of goods, works and services from suppliers who are in the register of domestic producers of goods;
- mandatory advance payment to domestic producers of goods in the amount of 30%, which allows suppliers to fulfil their contractual obligations in a timely and proper manner;
- exemption of domestic producers of goods from all types of collateral (security for advance payment, contract and anti-dumping measures);
- reduction of penalties (fines, penalties) for domestic producers of goods from 10 per cent to 3 per cent, which is also a significant support measure;
- procurement of goods subject to offtake contracts by single-source method in quasi-public sector procurement.
According to the Minister, these measures are aimed at stimulating domestic production and ensuring the share of Kazakhstani content in regulated procurement. Thus, for 6 months of this year, the share of Kazakhstan content in regulated procurement increased to 54.3%. It is noted that for 2023 it was 51%.
"Within the framework of the new Law "On public procurement", adopted on 1 July 2024, there are additional measures aimed at supporting domestic producers of goods, works and services. Among them there is a further expansion of the list of exemptions from national treatment. As practice has shown, this mechanism of support for domestic producers is effective. In this regard, sectoral state bodies are invited to make more active use of the tool of establishing exemptions," the Minister of Finance said, stressing that the purchase of goods, works and services from SMEs in the order and volumes approved by the Ministry of Finance will support domestic small and medium-sized businesses and provide them with volumes of purchases.
The list will be effective from 1 January 2025. All of the above measures, in turn, will ensure that the share of Kazakhstani content in regulated procurement exceeds 60%.
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