In Astana, Arman Shakkaliyev, Minister of Trade and Integration of the Republic of Kazakhstan, met with representatives of non-governmental organizations, the business community, and industry associations. The meeting focused on developing domestic trade, strengthening the position of domestic producers, and improving the regulatory framework for the industry.

Over 120 people attended the meeting, including Banu Nurgaziyeva, President of the Civil Alliance of Kazakhstan, Albert Rau and Nurzhan Ashimbetov, members of the Majilis of the Parliament of the Republic of Kazakhstan, representatives of the Association of Retail Chains, heads of large retail chains from across the country, owners of retail markets, as well as representatives of industry associations specializing in domestic producers and the National Chamber of Entrepreneurs.

Opening the event, the Minister emphasized that ensuring food security, price stability, and access to retail shelves for domestic producers are strategic objectives facing the Government, which the Head of State places particular emphasis on. The Ministry is implementing comprehensive measures aimed at reducing import dependence, developing private labels, and creating a competitive retail ecosystem in the country.

"Trade ranks second in terms of economic contribution to GDP, accounting for 16.5%, providing employment for over 1.5 million people. Domestic trade turnover has grown by almost 80% over the past five years, reaching 70.7 trillion tenge in 2024. This trend confirms that trade is not simply an intermediary, but a key sector that is shaping a sustainable middle class and new consumption formats," noted Arman Shakkaliyev.

The Minister of Trade expressed gratitude to businesses for their demonstrated social responsibility during the Bereke Fest campaign. Retail chains organized special corners and provided direct deliveries of meat and produce from agricultural firms to the Northwestern Territory. More than 80 retail chains participated. In the lead-up to Republic Day, discounts on a wide range of food and non-food products will be offered in all major shopping malls and online platforms. The format of the promotion was discussed.

First Vice Minister Aizhan Bizhanova announced current measures aimed at supporting domestic producers. Legislative requirements have been established requiring at least 30% of shelf space to be allocated to Kazakhstani food and non-food products. These requirements apply to all retail formats, from large retail chains to convenience stores and markets. State support also provides for an additional 20% increase in shelf space in exchange for subsidies. Failure to meet these conditions will result in the termination of funding and a refund.

To simplify interactions between producers and retail chains and marketplaces, a "Single Window" for applications is being created on the QazTrade platform, which will be integrated with the Register of Domestic Producers. This solution will ensure prompt and transparent access of products to the market.

Much attention is also being paid to fair leasing arrangements. New rules establish requirements for lease agreements with fixed terms, a limit on rent revisions no more than once per year, and mandatory six-month notice.

At the meeting, representatives of the Magnum and SMALL&SKIF chains shared their successful experiences in developing private labels (PLs). This is becoming a key strategic area in retail, helping to build customer loyalty and strengthen competitive positions.

Private labels are products offered exclusively within a single chain. They are distinguished by affordable prices (10-20% lower than comparable products), high quality, and cover all price segments from economy to premium.

The SMALL&SKIF chain emphasizes collaboration with domestic manufacturers, which helps ensure quality, support local businesses, and create a unique offering for customers. Magnum's private label development has demonstrated impressive results: over five years, the share of such products in the chain's turnover has grown from 1.7% to 11.9%. The network works with 71 producers in 18 cities, developing a sustainable supply chain and strengthening its local presence.

Representatives of industry associations, such as the Union of Potato and Vegetable Growers of Kazakhstan, the Association of Egg Producers of Kazakhstan, the Dairy Union of Kazakhstan, the Grain Union of Kazakhstan, the Association of Meat Processing Enterprises of Kazakhstan, and others, also expressed their positions. Participants expressed their willingness to act as reliable suppliers and provide the domestic market with stable supplies and the necessary product range, emphasizing their commitment to supporting the domestic retail network and developing sustainable supply chains.

Meeting participants paid special attention to the provisions of the new Tax Code. In particular, preferential special regimes will be retained for trade and the agro-industrial complex, and the taxation procedure for agricultural producers with a fixed income has been simplified.

The VAT rate has been reduced to 3% of income, while legal entities in the agricultural sector have a reduced VAT burden.

The base VAT rate has been set at 16%, with small businesses operating under special regimes exempt from payment. Tax incentives for the self-employed and processors are also retained, including the possibility of deferring VAT on imported raw materials used for domestic production.

"If a business serves the public, provides simple services, and small-scale trade, the simplified tax system remains in place. However, if a business serves companies, works with government contracts, builds large facilities, or has a large turnover, that's a different matter. There must be comprehensive tax accounting. We also prioritized transparency. The simpler the activity, the easier it is to administer the simplified system," Vice Minister of National Economy Yerlan Sagnayev noted in his speech.

After discussing key areas of domestic market support, Banu Nurgaziyeva, President of the Civil Alliance of Kazakhstan, noted the importance of consolidating the efforts of all parties.

"Today, relevant NGOs, associations, and domestic producers have gathered. Indeed, food security is a key component. We want domestic products to be a true priority; we want healthy products. Domestic products are in high demand and are of good quality. Working together, government, business, and the civil society can boost and develop domestic production," she emphasized.

At the end of the meeting, the participants expressed their readiness for further cooperation, noting the importance of regular dialogue between the government, business, and civil society to foster a fair, competitive, and transparent market that benefits all citizens.

Source : https://www.gov.kz/memleket/entities/mti/press/news/details/1084036?lang=kk