Kazakhstan-Spain trade turnover surpasses $2B

When there are many rates - accounting becomes more complicated, declarations are more complicated, debit balance accumulates. To avoid this, we propose 16%, 10% and exemption," Serik Zhumangarin said.

This undermines the tax system and prevents normal offsetting of VAT. Therefore, it is proposed to reduce the threshold for registration from 80 million tenge to 15 million tenge. Conditions are created where the cost of the costs of splitting will exceed the benefits of splitting. This will create a level playing field for businesses and prevent evasion schemes. In this matter we are guided by international experience. In most developed and developing economies, the VAT threshold is either much lower or is absent at all," Deputy Prime Minister added.

• The income limit under the proposed regime remains at 600,000 monthly wages that is 2,359 million tenge per year;
• Limitations on the number of employees are removed;
• FOT is deducted if sales income exceeds 100 million tenge per year; 100 million tenge to incentivise wage whitewashing;
• We keep the rate at 4% (with the possibility of a 50% reduction by maslikhats);
• And the key condition is to reduce the types of activities and realisation only in the B2C segment.

It is important to note that the possible inflationary effect of the tax increase will be short-term and will be exhausted within a year. Additional inflation is expected at the rate of 2.5 - 3," Serik Zhumangarin noted.

Previously, a private platform operated for several years, which led to a certain monopoly in the field of subsidies and issues of transparency in the allocation of financial resources. Following the implementation of the system, positive effects have been achieved in the form of free of charge for all users, saving them more than 1 billion tenge, as well as minimised corruption risks through the introduction of a queue of applications and waiting list," Aidarbek Saparov noted.

In order to ensure a comprehensive approach to the digitalisation of agriculture and the creation of a unified digital platform of the agro-industrial complex, it is planned to unite all available information systems in agriculture. The creation of a unified digital platform will make it possible to ensure a full cycle of traceability in agriculture, by interconnecting the subsidy system, farmland management, crop and livestock production. In this regard, I would like to note once again that the gradual digitalisation of the agro-industrial complex is one of the main tasks of the Ministry for the near future, in order to ensure transparency of products and food security of the country," Aidarbek Saparov summed up.

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In general, we approve of the proposed approaches. This week it is necessary to hold a discussion in the regions with all categories of citizens. I will also hold meetings with business in Astana and in the regions. Based on the results of this work we need to submit amendments to the draft Tax Code and the accompanying bill to the Majilis by 20 February. Then we will continue the discussion in the Majilis," Prime Minister noted.

Images | primeminister.kz

The President has set a task is to change the structure of the economy with strengthening the development of the real sector. Therefore, the discussed reforms are important for the country. Fiscal reform will be an effective mechanism to improve the work on further development of the economy," Olzhas Bektenov emphasised.

• For the US dollar: 7 tenge
• For the Euro: 10 tenge