The Minister of Finance of the Republic of Kazakhstan, Madi Takiev, and the Vice Minister of National Economy, Azamat Amrin, discussed with business representatives the Government's proposals on establishing differentiated VAT rates as part of the tax reform.
The meeting was organized with the support of the Atameken NCE, and was attended by more than 150 representatives of business, associations, public and industry associations. Among them were representatives of the Kazakhstan Association of Tax Consultants, the Self-Regulating Public Catering Organization, members of the regional councils of the Astana Chamber of Entrepreneurs and the committees of the processing and pharmaceutical, medical industries, the Atameken NCE, the Alageum Electric group of companies, the Petro Mining Association, and others.
“The Head of State, Kassym-Jomart Tokayev, emphasized that the tax system should be balanced. This was a clear instruction. It should take into account the interests of business and the state. Today we have gathered to discuss one of the main issues, which concerns value-added tax. We hold many meetings in the regions with the participation of representatives of the Ministries of Economy, Finance, and the Atameken Chamber. The work is extensive and comprehensive. All proposals received at our address are listened to. We will form a single position, because the Tax Code should be very simple, understandable, and specific,” Madi Takiev noted. VAT is one of the main sources of budget replenishment. Increasing and differentiating the VAT rate will reduce the budget’s dependence on variable oil revenues and finance priority state projects. In turn, Vice Minister of National Economy Azamat Amrin outlined the Government’s proposals for establishing differentiated VAT rates as part of the tax reform. “We propose to consider the following mechanism: a general fixed VAT rate of 16%, complete exemption of agricultural producers from VAT, and for a number of industries – an intermediate rate of 10%. Thus, the differentiation of rates proposed by the Government: 16%, 10%, 0% and exemption",
— explained Azamat Amrin.

It was noted that currently in the agricultural sector, farms do not pay VAT, and legal entities pay only 30% of the taxes due to the existing benefits to the budget. Under the new mechanisms, none of them will pay VAT. This will make Kazakhstani agricultural products (potatoes, tomatoes, onions, etc.) more competitive. The types of industries in which the 10% rate will apply are still being discussed with business.
The meeting also made proposals for reviewing the simplified declaration and retail tax regime, the essence of which is to maintain the income threshold at 600 thousand MCI (2 billion 359 million tenge) per year. The main change is to implement this regime only in the B2C segment (retail trade). It was proposed to remove the restriction on the number of employees. If the entrepreneur's income from sales exceeds 100 million tenge per year, it is possible to reduce taxable income by the amount of the wage fund (wage payment fund). Thus, the limit of 100 million tenge will provide an incentive to justify wages. At the same time, the 4% retail tax rate (with the possibility of a 50% reduction by maslikhats) will be maintained.
It is expected that tax revenues to the country's budget will increase by 4-5 trillion tenge annually during the implementation of the tax reform. These funds will help reduce dependence on the National Fund; reduce the level of state debt and direct additional resources to credit investment projects, strengthen development institutions, and modernize the housing and communal services, heat and energy systems of Astana city.

According to the Kazhydromet RSE of the Astana city, a tornado will occur in Astana on February 13. The wind will blow from the southwest, with a force of 15-20, with a daytime gust of 23-28 m/s. In this regard, the capital's Emergency Situations Department has issued an appeal on safety rules, the city administration's official website reports.
Due to adverse weather conditions, the Astana City Emergency Situations Department recommends that citizens follow safety measures to avoid injury during strong winds and storms:
- Take precautions in the winter. Follow storm warnings and avoid long journeys in case of worsening weather conditions.
- Do not travel by private vehicle. If necessary, use public transport and plan your route in advance.
- Be careful on the street. Snowstorms and wind can make it difficult to see, and roads can be slippery. Wear warm clothes and non-slip shoes.
- Check the heating system. Make sure that the heating in your home is working properly and there is enough fuel.
- Do not stay on the street for a long time - frost and wind can cause frostbite.
In case of emergency, call "101" and "112".

Source : https://www.gov.kz/memleket/entities/economy/press/news/details/935215