A meeting was held at the Shymkent Chamber of Entrepreneurs between business representatives and the Vice Minister of National Economy, Bauyrzhan Kudaybergenov. The main topic of discussion was the upcoming tax reforms, including an increase in the VAT rate. Representatives from the akimat, the state revenue department, and maslikhat deputies also participated in the meeting, as reported by Primeminister.kz.
Opening the meeting, the director of the Chamber of Entrepreneurs, Sabira Adambekova, reminded attendees that the president had instructed to consider the opinions of businesses when developing tax changes. Deputy Akim of the city, Aydyn Karimov, emphasized the importance of a balanced approach that would support the development of entrepreneurship and the economy.
The Vice Minister of National Economy, Bauyrzhan Kudaybergenov, presented the government's proposals.
“Kazakhstan has one of the lowest VAT rates. While VAT is a crucial source of revenue, in 2022 it accounted for only 4% of GDP, which is significantly lower than the average of 7% in countries with comparable income levels. Strengthening VAT will not only increase revenues but also reduce dependence on volatile oil revenues and assist in financing the country's infrastructure and industry development programs,” said the vice minister.
Government agencies propose raising the general VAT rate to 16%, while introducing a reduced rate of 10% for certain sectors; however, the specific list of these sectors has yet to be finalized. Agricultural producers are expected to be completely exempt from the tax. Additionally, there are considerations for reducing the tax burden in the healthcare sector.
During the meeting, representatives of industry councils expressed questions and proposals on behalf of the business community. In particular, a member of the Regional Council of the RPP of Shymkent, the head of the "Keremet-Ontustik" Kindergarten LLP, Diana Karamanova, suggested exempting social institutions from VAT or providing tax incentives to keep services affordable.
The head of the Association of Private Clinics in Shymkent and Turkestan region, Anuarbek Maymakov, noted that an increased rate in medicine could complicate access to medical care.
Industry council member Daulet Kanashayev highlighted the importance of considering the specifics of the light industry when making changes to the Tax and Entrepreneurial Codes of Kazakhstan.
In conclusion, Vice Minister Bauyrzhan Kudaybergenov assured that all proposals would be collected, analyzed, and taken into account in future work.
It is worth noting that during a previous meeting with Vice Minister of National Economy of Kazakhstan Bauyrzhan Kudaybergenov in the Turkestan region, business representatives suggested granting tax holidays to low-income enterprises.
In turn, Prime Minister Olzhas Bektenov, during a meeting with entrepreneurs in the North Kazakhstan region, announced that tax benefits would be provided to deep processing enterprises.
“The government sets the tone and priorities: enterprises engaged in deep processing and the development of new types of finished products will receive tax benefits. At the same time, the export of raw materials and the production of low-processed goods will be taxed at higher rates,” explained Olzhas Bektenov.