Deputy Prime Minister – Minister of National Economy Serik Zhumangarin met with business representatives in Almaty, as reported by the press service of the Prime Minister's office.
The meeting was also attended by Minister of Finance Madi Takiyev, Vice Minister of National Economy Azamat Amrin, Chairman of the Board of the National Chamber of Entrepreneurs "Atameken" Raimbek Batalov, over 50 representatives from large and small businesses, the Light Industry Association, tourism companies, and other industry business associations, as well as independent experts.
Lowering the VAT registration threshold to 15 million tenge and narrowing the scope of activities under the special regime for B2C were the main issues raised by entrepreneurs during the meeting. The thresholds established under the reform for taxpayer registration may become a barrier for the further operation of small businesses, leading entrepreneurs to either split their enterprises or conceal parts of their activities to avoid taxation.
“Every year, the state loses about 800 billion tenge in income tax due to business fragmentation caused by the high VAT registration threshold. De facto we have medium-sized businesses, but de jure we do not. The introduction of these mechanisms – lowering the VAT registration threshold and a simplified special regime exclusively for B2C – is not a fight against entrepreneurship, but a battle against the shadow economy. Those who pay taxes cannot compete fairly with those who do not. Without widespread support for businesses in their pursuit of fair taxation, government agencies will not be able to effectively combat the shadow economy,” noted Azamat Amrin.
Answers were also provided to questions regarding reducing the burden on the wage fund. It was noted that the previously proposed reform regarding the abolition of social tax and mandatory pension contributions by entrepreneurs could have taken place on the condition of raising the VAT rate to 20%. This way, the state would have revenues to cover social contributions instead of the employer. However, with the currently proposed VAT rate of 16%, social contributions are suggested to remain unchanged.
Representatives from various sectors – including sports clubs, information security, medicine, light industry, tourism, and others – spoke at the meeting. As a result of the meeting, Serik Zhumangarin thanked all participants for the constructive dialogue, noting that all proposals would be reviewed in working groups within the government before the tax reform project is submitted to the Mazhilis for consideration.
It is worth mentioning that it was also announced today that the Ministry of Finance of Kazakhstan is considering issues related to the reduction of ineffective tax benefits and the differentiation of personal income tax based on individuals' income.
Previously, Kazakhstan had considered increasing the VAT rate from 12% to 20%, while intending to reduce the burden on the wage fund to 30%. Deputy Prime Minister – Minister of National Economy Serik Zhumangarin also proposed lowering the VAT threshold to 15 million tenge. During a meeting with entrepreneurs on January 28, 2025, President Kassym-Jomart Tokayev stated that any innovations should be based on comprehensive analysis and a well-thought-out strategy, and he instructed the government to further explore the VAT rate issue.
On February 11, 2025, Serik Zhumangarin said at a government meeting that the value-added tax rate “will be differentiated: 16%, 10%, 0% and exemption from VAT.” It was also reported that in the construction sector, they plan to implement a social infrastructure payment (SIP) instead of VAT.
Prime Minister Olzhas Bektenov instructed that the Tax Code project be submitted to the Mazhilis by February 20, 2025.