Vice Minister of Finance Dauren Temirbekov met with representatives of the business community of Akmola region at the Regional Chamber of Entrepreneurs. The meeting discussed tax reforms, including the issue of increasing the VAT rate.

On February 7 of this year, President Kassym-Jomart Tokayev instructed the Government to further develop the issue of the VAT rate at a meeting with business representatives in Astana. In this regard, on the instructions of Prime Minister Olzhas Bektenov, members of the Government, together with representatives of the Atameken National Chamber of Entrepreneurs, traveled to the regions to discuss tax policy issues with the business community in local areas. 

Dauren Temirbekov presented the Government's proposals on differentiated VAT rates. It is proposed to set the general rate of value added tax at 16%, and it is planned to completely exempt producers of agricultural products from tax. An intermediate rate of 10% will be introduced for a number of industries. Thus, the VAT rate proposed by the Government includes: 16%, 10%, 0%, tax exemptions. 

“The VAT increase will not affect convenience stores, restaurants, beauty salons and other retail outlets,” — explained Yerlan Saginayev, Director of the Tax and Customs Policy Department of the Ministry of National Economy of the Republic of Kazakhstan.

During the meeting, representatives of the industry community expressed their opinions on the proposed changes to the tax legislation.

“In addition to raising taxes, it is important to critically review the structure of budget expenditures. It is necessary to strengthen control over compliance with the strict budget rules introduced last year, and it is necessary to look for reserves within the country's economy. The 10% reduction in the tax burden on the payroll fund should not be accompanied by compensation due to an increase in the VAT rate, it should be an independent tax reform,” — believes Kairat Sultanov, head of the Akmola region Tourist Association, chairman of the tourism and ecology sectoral council.

On behalf of small business entities, the head of the S.A. Akhmadiev PE Sadybek Akhmadiev spoke and proposed considering increasing the VAT to 50 thousand MCI during registration.

The director of the Akmola region Chamber of Entrepreneurs, Yerkanat Muslimmanbek, said that the issue of the calculation and threshold registration of value-added tax should be approached in a reasonable manner.

“We hope that the opinion of the Akmola business community will be taken into account, we will send all the proposals of our colleagues in writing to the Ministry of Finance through the Central Office of the NCE. "The issue of VAT rates and threshold registration should be approached in a reasonable manner, taking into account the opinions of qualified experts, entrepreneurs and deputies," he added.

In turn, Vice Minister Dauren Temirbekov noted that all received proposals will be carefully considered, analyzed and taken into account in further work.  

Source : https://www.gov.kz/memleket/entities/aqmola/press/news/details/938136