What measures are being considered in Kazakhstan to boost budget revenue?

At the directive of the Prime Minister regarding the development of new approaches to reforming the budgetary and tax policy, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin held the first meeting of the Expert Council under the Ministry of National Economy, as reported by Primeminister.kz.

The Council meeting included participation from Finance Minister Madi Takiyev, Deputy Chairman of the National Bank Akylzhan Baymagambetov, Vice Minister of National Economy Azamat Amrin, and over 20 experts, including leaders from major financial, investment, analytical, and consulting organizations, the Council of the Association of Financiers of Kazakhstan, and the National Chamber of Entrepreneurs "Atameken."

Participants discussed measures to enhance budget revenue, specifically a set of new and previously proposed initiatives as part of the development of a new tax code. Most participants agreed with the suggested changes in the new version of the code, which include the elimination of several existing tax benefits, an increase in the corporate income tax (CIT) rate for banks and financial organizations, the rescheduling of the taxation of rewards for government securities from 2030 to 2026, and a review of the taxation of the gambling industry. These measures aim to boost budget revenue by over 1 trillion tenge.

However, these changes are insufficient to bridge the current gap between budget expenditures and revenues. As highlighted during the meeting, the annual burden on the budget is increasing, social expenditures are rising, while less than 10% of budget expenditures are allocated to the development of the real sector of the economy. Without reforms in the tax and budget sphere, rectifying the situation is nearly impossible.

Meeting participants shared their views and proposals on balancing the discrepancies between monetary and fiscal policies and enhancing the efficiency of the tax system.

“The year 2025 will be challenging for Kazakhstan. We will have to implement long-overdue reforms that have been postponed in previous years. This includes adjusting prices to market conditions so that the government can continue to fulfill its social obligations. Unfortunately, we need to adopt a series of unpopular reforms now to correct the tax situation and improve their administration, and possibly even review rates. Most importantly, we need to do this not just to preserve the National Fund, but to ensure that the economy remains market-oriented. The new tax code, part of which we discussed today, will soon be publicly available. I urge everyone to express their opinions,” said Rasul Rysmambetov, Chairman of the Board of "KФ NAC Analytica" (NU).

“Today we discussed the new Tax Code being prepared by the Ministry of National Economy of the Republic of Kazakhstan. During the discussion, we focused on the numerous proposed changes. The Tax Code currently under consideration is crucial for the future of our country. Of course, there are many proposals, such as improving tax administration, increasing or decreasing tax rates, and so forth. In this regard, we need solutions that will contribute to improving the future of our people. This is the importance of meetings like today's,” emphasized economist Galymzhan Aitkazin.