Prime Minister instructs to hold discussions in different regions and to submit amendments to draft Tax Code to Parliament by 20 February

At the Government session chaired by Prime Minister Olzhas Bektenov, the issue of the upcoming tax reform was considered off the agenda, El.kz cites primeminister.kz.

The Head of State instructed to discuss the nuances of the forthcoming changes with business, deputies and experts at a meeting with entrepreneurs the previous day.

Deputy Prime Minister - Minister of National Economy Serik Zhumangarin made a report on the ongoing work at the Government session.

According to him, a clear structure of rates is introduced to simplify administration of 16%, 10%, 0% and exemption. It is proposed to raise the VAT rate to 16%, which will reduce the dependence of the budget on oil revenues and direct additional funds to priority projects. VAT exemption is introduced for agricultural producers, which will increase their competitiveness. A reduced rate of 10 per cent is also proposed for the healthcare sector, but the possibility of extending it to other sectors is being discussed. In addition, the threshold for VAT registration is being lowered from 80 million to 15 million tenge, which will combat artificial fragmentation of business and create a level playing field for all companies. The retail tax regime is being revised, restrictions on the number of employees are being removed, and realisation is being limited to the B2C segment. The expected growth of tax revenues is 4-5 trillion tenge annually. This will help reduce dependence on the national fund, reduce government debt and channel funds to infrastructure and industry. The possible inflationary effect will be short-term and is estimated at 2.5-3%.

The proposed approaches were discussed at a meeting with representatives of the National Chamber of Entrepreneurs Atameken and the business community.

"In general, we approve of the proposed approaches. This week it is necessary to hold a discussion in the regions with all categories of citizens. I will also hold meetings with business in Astana and in the regions. Based on the results of this work we need to submit amendments to the draft Tax Code and the accompanying bill to the Majilis by 20 February. Then we will continue the discussion in the Majilis," Prime Minister noted.

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