Serik Zhumangarin: Financing of spring field and harvesting works planned to reach 1 trillion tenge
During the Government session, where measures to implement the message of the Head of State were considered, Deputy Prime Minister Serik Zhumangarin reported on the work being done in the agro-industrial complex, primeminister.kz reports.
This year the volume of financing of spring field work for the first time increased more than 2 times. On preferential lending cheaper interest rate was carried out at the stage of attracting commercial funds holding "Baiterek". Thanks to this, farmers immediately receive a cheaper loan. According to Deputy Prime Minister, next year by this analogy will be launched preferential financing for processing enterprises to replenish working capital. In addition, the same mechanism will be applied to the involvement of second-tier banks in the mechanisms of preferential financing of agro-industrial complex from 2024.
Taking into account the tasks to bring the application of mineral fertilisers to 1.9 million tonnes next year, and in general to 3.2 million tonnes, to increase the rate of renewal of agricultural machinery to 8-10%, the volume of financing of spring field and harvesting works is planned to reach 1 trillion tenge.
The volume of preferential lending for investment projects will be increased to 800 billion tenge.
As the Head of State noted, the most important task is a gradual transition from subsidising interest rates for farmers to preferential lending. A roadmap with specific measures and deadlines has been approved to address this issue. In general, according to the Presidential Decree ‘On measures to liberalise the economy’, the full transition from commodity-specific subsidies to concessional lending will be ensured by the end of 2028," Zhumangarin said.
As part of the implementation of the President's instructions, the Ministry of Agriculture has written off 2 million cattle, 3.2 million cattle, 3 million tonnes of non-existent milk since the beginning of last year. The main share is accounted for personal subsidiary farms. In addition, 2.5 million tonnes of cereals, up to 2 million tonnes of potatoes and more than 300 thousand tonnes of onions are planned to be written off.
As Deputy Prime Minister noted, in order to exclude repeated additions, information systems of accounting and traceability of agricultural products, as well as the issuance of subsidies are being improved. In addition, the submission of statistical reporting will be 100% covered by peasant and private farms - recipients of subsidies.
In 2022-2023, the Commission on Land Withdrawal has returned 10 million hectares of unused and irregularly issued farmland to state ownership. Of these, 4.3 million hectares have already been put into turnover. For the current year the plan on return is 2 million hectares, 1.3 million hectares have been returned.
For effective land management, the Commission's activities have been completely reformatted. Its main functions will be to strengthen control over the rational use of land and control over redistribution of returned farmland," Zhumangarin said.
In order to solve the problematic issues of bona fide agrarians who were granted land plots for farming without competitive procedures, a special working group has been created to analyse the practice of cancelling decisions of local executive bodies and develop proposals on this issue. The first meeting is scheduled for 10 September this year.
At the same time, the issue of introducing the practice of unilateral cancellation of contracts of unscrupulous persons will be worked out.
Implementation of the commodity crediting mechanism will be carried out within the framework of social responsibility of business. Commodity credit will be issued by representatives of medium and large agricultural business for individual entrepreneurs.
According to Deputy Prime Minister, within the framework of scaling the experience of Zhambyl region on the creation of training centres, it is planned to maximize the potential of subsidiaries of the National Agrarian Scientific and Educational Centre.
To date, 29 Centres for dissemination of knowledge operate in all regions of the country. To strengthen their activities, appropriate work will be carried out with increased funding. For this purpose, screening will be carried out and areas where the Centres need to be established will be identified.
Stimulation of export of high value-added goods should be based in a three-pronged approach: investment - production - sales to priority export markets," Zhumangarin said.
According to him, it is proposed to consider reducing VAT on imports of strategic raw materials not produced in Kazakhstan, for the production and export of goods of high processing. At the same time, it is important to provide norms for simplified and accelerated VAT refund for exports of high-tech goods.
For this purpose, the Ministry of Trade and Integration will form a list of Kazakhstani enterprises - exporters of high-tech goods for the purposes of VAT refund in a simplified procedure.
When purchasing grain from agricultural producers, Prodkorporatsiya buys the grain with VAT, but when selling it for export the VAT amount is not refunded, which puts the National Grain Operator in unequal conditions with private traders.
VAT refund on the exported volume will allow the Corporation to use the funds to reduce its financial liabilities.
These support measures will be worked out by the Government in the new Tax Code. No less important is the issue of reimbursement of costs for the export of high value-added goods. As noted by Deputy Prime Minister, today the costs of exports of goods of upper-end processing can be reimbursed up to the level of 85%, while low-end products - no more than 35%. In this regard, a new approach is being introduced to stimulate exports oriented to air freight transport. First of all, these are products of the agro-industrial complex and food industry.
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