informkz.com

A petition against the increase in VAT rates has been launched in Kazakhstan.

The authors of the document believe that the increase in this type of tax does not take into account the interests of businesses and the public.
В Казахстане стартовала петиция против увеличения ставки НДС.

A petition against the increase of the VAT rate has been launched in Kazakhstan, reports the business information center Kapital.kz, citing the website Epetition.kz.

“Currently, a new Tax Code is being developed, which should ensure a reasonable balance between creating comfortable conditions for investors and maintaining the necessary level of budget revenues. Meanwhile, the business community believes that the document is primarily aimed at increasing tax rates,” notes the petition's author.

The statement includes a quote from Kassym-Jomart Tokayev regarding VAT, which he made during an extended government meeting in 2024:

“Raising VAT from 12% to 16% is not a panacea; the VAT itself needs reform, as it has taken on a different nature in Kazakhstan. Experts reasonably argue that increasing VAT could raise inflation levels and the share of the shadow economy, as well as reduce the country's investment attractiveness. The previous government countered such arguments with claims of additional budget revenues that would replace transfers from the National Fund. It must be acknowledged that so far, the work on forming a new Tax Code does not meet my expectations as the head of state.”

Additionally, the petition initiator believes that the proposal to raise the VAT rate to 20% is considered solely from the perspective of the national economy ministry's interests in replenishing the budget.

“At the same time, the opinions of businesses and all citizens are not taken into account. This means that every consumer, every individual, every taxpayer will feel the impact of these changes. The fundamental goal of interaction between business entities and the state, aimed at creating favorable conditions for the development of entrepreneurship and society, is being violated. We are against increasing the rate and lowering the VAT threshold in Kazakhstan!” - states the petition.

It is worth noting that during an extended government meeting with the participation of the president on January 28, the Deputy Prime Minister, Minister of National Economy Serik Jumangarin proposed to lower the VAT threshold to 15 million tenge.

Prime Minister Olzhas Bektenov stated during the meeting the need to increase the VAT rate while reducing the social tax and mandatory pension contributions from employers.

“The main tax burden falls on the wage fund, and therefore on the cost price. Even before the product hits the shelves, the entrepreneur is already forced to pay a large portion of the taxes. The government proposes to reduce the burden on the wage fund by shifting it to sales. To achieve this, it is necessary to raise the VAT rate while simultaneously lowering the social tax and mandatory pension contributions from employers,” said Olzhas Bektenov.

Today, the question of increasing the VAT rate from 12% to 20% is being considered in Kazakhstan.