A meeting of local business representatives with the Vice Minister of National Economy of the Republic of Kazakhstan Bauyrzhan Kudaibergenov was held at the Shymkent Chamber of Entrepreneurs. The main topic of the meeting was to discuss the upcoming tax reforms, including the increase in the value added tax (VAT) rate. The meeting was also attended by representatives of the akimat, the state revenue department, and maslikhat deputies.
Opening the meeting, Sabira Adambekova, Director of the Chamber of Entrepreneurs, recalled that the President instructed to take into account the opinions of business when developing changes to the tax system.
Bayrzhan Kudaibergenov, Vice Minister of National Economy of the Republic of Kazakhstan, reported on the government's proposals.
“The VAT rate in Kazakhstan is one of the lowest in the world. Despite the fact that VAT is an important source of revenue, in 2022 it amounted to only 4 percent of gross domestic product (GDP), which is much lower than the average for countries with a relative income level of 7%. Strengthening the value-added tax will not only increase revenues, but also reduce dependence on volatile oil revenues and help finance the country's infrastructure and industrial development program," the vice minister said.
State bodies are proposing to increase the general VAT rate to 16%, and for some industries to introduce a reduced rate of 10%. However, the exact list of these industries has not yet been clearly defined. In addition, it is planned to completely exempt agricultural producers from the tax. Reducing the tax burden for the healthcare sector is also being considered.
During the meeting, entrepreneurs raised questions and suggestions on behalf of the business community in the region. They expressed concern about the increase in the tax burden.
In particular, Diana Karamanova, a member of the Shymkent City Regional Council, head of the Keremet-Ontustik Nursery and Kindergarten LLP, proposed exempting institutions providing social services from VAT or providing tax benefits to make services more accessible. Anuarbek Maimakov, head of the "Association of Private Clinics of Shymkent City and Turkestan Region", noted that the proposal to introduce a 10% -20% VAT rate in the medical sector may complicate the availability of medical care.
Daulet Kanashaev, member of the industry council under the Chamber of Entrepreneurs, noted the importance of taking into account the specifics of light industry when making changes to the Tax and Entrepreneurship Codes of the Republic of Kazakhstan. In particular, he proposed to establish the transition to the category of large enterprises only if the average annual number of employees exceeds 500 people, and to leave the average annual income indicators unchanged.
During the meeting, many other entrepreneurs asked questions and made their suggestions.
Bayurzhan Kudaibergenov, who answered all the questions, summed up the meeting and assured that all the suggestions would be collected, analyzed, and taken into account in the future work.

Source : https://www.gov.kz/memleket/entities/shymkent/press/news/details/937741