Small and medium-sized enterprises (SMEs) in Kazakhstan are facing unequal conditions compared to sellers operating on foreign e-commerce platforms. This was stated by Denis Stepanets, chairman of the Digital Kazakhstan Association, during a government meeting, as reported by a correspondent from the Kapital.kz business information center.
“Local businesses are burdened with high costs – including taxes, customs duties, certification, and logistics. In contrast, sellers on foreign platforms do not pay taxes in Kazakhstan, gaining competitive advantages,” he noted.
Denis Stepanets provided an example of the expenses incurred by SMEs when importing a batch of goods, which include customs duties of 7%, VAT on imported goods of 12%, customs fees of 4%, and certification costs of 17%.
“Overall, expenses are 62% higher compared to foreign sellers. Meanwhile, sellers on foreign trading platforms incur zero expenses. Proposed measures include simplifying the import process for SMEs, thereby reducing the total expense rate to 15-22%, and secondly – streamlining customs procedures, which involves complete digitalization of the certification process and simplifying customs documentation, thus shortening the time required for goods clearance,” said Denis Stepanets.
Thirdly, he suggested ensuring the integration of local marketplaces with customs systems and automating processes to reduce trading costs.
“Fourthly – the introduction of mandatory certification for goods purchased on foreign platforms. This will ensure product quality and reduce risks for consumers. And fifthly – the implementation of duties on goods purchased on foreign platforms. This step, in our opinion, will create equal conditions for domestic businesses and foreign competitors,” he clarified.
Denis Stepanets also shared the expected results from the proposed measures. This includes a doubling of tax revenues to 62.6 billion tenge by 2025, provided there is parity between SMEs and foreign traders on platforms, the creation of new jobs – an additional 500,000 jobs over four years, and a reduction in the share of informal imports.
The head of the association specified that modern digital tools assist entrepreneurs in legalizing their activities and operating within the legal framework, which “leads to an increase in tax revenues to the budget and the development of competition and logistics.”
“Today, an entrepreneur from Aktobe can sell their products to customers in Shymkent while competing with large retail chains,” concluded Denis Stepanets.