Kazakhstan eyes around KZT50bn in tax revenue from marketplaces

As of today, financing of manufacturing industry projects worth more than 1.1 trillion tenge is being worked out. In particular, for the implementation of major projects through the CDB, the need is 183.5 billion tenge. For 2025-2028, 800 billion tenge will be allocated for medium and small projects, including about 100 billion tenge to finance small industrial zones, for which there is demand from small businesses. These measures will ensure the growth of industry, create new jobs and improve the competitiveness of economic sectors," Yersaiyn Nagaspayev emphasised.

• 300 billion tenge to buy out 21 thousand rental housing;
• 120 billion tenge for the supply of engineering and communication infrastructure;
• 80 billion tenge to fund Otbasy Bank's ‘2-10-20’ and ‘5-10-20’ mortgage programmes.

The Ministry will continue to work on effective utilisation of allocated financial resources, support of strategically important initiatives and creation of conditions for sustainable economic growth," Yersaiyn Nagaspayev concluded.

This fund will be an effective tool to address the issue of sufficiency of collateral for large and strategically important projects. The project initiator must ensure its own participation in the amount of at least 20 per cent of the project cost. The remaining 80 per cent of the project cost will be financed by a loan from BVU and DBK. At the same time, up to 30% of the financing amount will be covered by the holding company's guarantee for creditors," Rustam Karagoyshin explained.

• offering real sector enterprises a fair rate without distorting the financing market, including stopping the practice of ‘cannibalism’ (duplication of products, migration of projects between support operators) between financiers and ‘arbitrage’ on rates (different rates and unequal access of market participants, as confirmed by the observations of Supreme Audit Chamber of the Republic of Kazakhstan);
• reducing the burden on the country's budget with a gradual withdrawal from the practice of subsidising.

As part of the Head of State's instruction announced at a recent Government session, it is planned to launch a Guarantee Fund for SMEs this year. The capital of this fund will be formed through the participation of the capital of the Damu Fund, mandatory annual contributions of the BVU, as well as funds from the state, large companies and other interested organisations. Within the framework of the creation of the guarantee fund, the functions of Damu Fund will be supplemented with new tasks: the product line of the guarantee instrument will be expanded, the amount of guarantees provided will be increased, and the list of sectors of the economy subject to guarantee will be expanded. It is planned to issue guarantees for new products on the principles of irrevocability and unconditional nature," Rustam Karagoyshin noted.

To fulfil the objectives of the National Project, the holding plans to finance projects of natural monopolies in the amount of 4.7 trillion tenge over a five-year period. At the same time, in 2025, the need for financing is 283 billion tenge based on the need to cover red zones," Rustam Karagoyshin specified

• creation of stable export supply chains and expansion of export geography (PRC, Central Asia, EU);
• reduction of speculative factors in pricing and market stabilisation;
• partnership with major foreign buyers (COFCO and others);
• investment support and involvement of the private sector in trade activities;
• improvement of conditions for agro-producers on transport and logistics services.

The Head of State pays great attention to the development of the country's agro-industrial complex. Last year we had a record harvest. The government has allocated 700 billion tenge to support agrarians. An important issue is the provision of quality and affordable mineral fertilisers. Therefore, your project is of interest to us from the point of view of meeting the domestic demand for urea, as well as its export," Head of the Government of the Republic of Kazakhstan noted.

These investments will be used to create new projects in the country, which will lead to an increase in production capacity in the manufacturing industry and the creation of new high-productive jobs," Serik Zhumangarin said.

The volume of loan guarantees and interest rate subsidies for SMEs will be increased. Already this year about 30 thousand SME projects worth 1.7 trillion tenge will be supported," Serik Zhumangarin informed.

The national project will contribute to the growth of investment, as well as the emergence of new domestic goods and manufacturers whose products will be purchased in the construction of municipal infrastructure in the country. The implementation of the national project will reduce the wear and tear of infrastructure and improve its reliability," Serik Zhumangarin emphasised.

Initiatives aimed at increasing real sector financing alone will result in a significant increase in GDP this year, adding at least 2 percentage points to its growth. To monitor the timely implementation of the above measures, a Growth Operational Headquarters under my leadership has already been set up and is in place. All arising problems will be solved promptly and immediately, Serik Zhumangarin summarised.

We have analysed mutual settlements of entities applying special tax regimes with companies operating under the generally established regime. The analysis showed the following: mutual settlements between such regimes have grown 2 times over the last year - from 5 to 10 trillion tenge. At the same time, out of the total turnover of 16 trillion tenge under special tax regimes, mutual settlements with the generally established regime account for 10 trillion tenge. That is, while earning hundreds of billions of tenge, taxpayers pay paltry taxes," Madi Takiyev said and voiced a number of splitting schemes used by businesses.

In order to reduce the burden on the payroll, the employees of the enterprise are taken out of the workforce, registered as individual entrepreneurs and provide services to the former employer not as employees, but as individuals. Accordingly, tax payments to the labour remuneration fund are reduced, social responsibility is removed from the employer, and further it is borne by the entrepreneur," Madi Takiev reported.

• - introduce a legislative criterion of business fragmentation;
• - introduction of the principle of predominance of essence over the form of tax disputes;
• - introduction of methods of control and proof of such facts;
• - limitation of types of activities for sole proprietorships.

It is evident from the information of the Minister of Finance that unscrupulous entrepreneurs, applying various schemes to optimise the tax burden, behave inappropriately. With billion-dollar turnovers they pay to the budget amounts that absolutely do not correspond to their profits. We have a full list of such large companies. There are large well-known construction companies, such as BI Group, BAZIS and many others. Well-known and popular restaurants, fitness clubs and various companies operating in other sectors of the economy.