Kazakhstan: Petition Against VAT Threshold Reduction Surfaces

A petition opposing the government's plan to lower the VAT registration threshold has been launched on Kazakhstan’s official online petition portal. Supporters fear the move will increase the financial burden on small businesses, Orda.kz reports.

The petition was created by Anuarbek Skakov, Chairman of the Chamber of Legal Consultants of Astana, and Zhangeldy Suleimanov, Lawyer at the Almaty City Collegium. They argue that lowering the VAT threshold will lead to small business closures, rising prices, and higher operational costs.

In their appeal, the lawyers argue that many entrepreneurs already find the current VAT threshold of 78.6 million tenge (set for 2025) too low.

If the government lowers it to 15 million tenge, as proposed, a significantly more significant number of businesses will become liable for VAT, forcing them to include it in their prices. Consumer costs could rise by at least 20%.

Skakov and Suleimanov also warn of additional challenges small businesses may face if the threshold is revised.

These include higher expenses for accounting and legal services, increased scrutiny from tax authorities, and a wave of SME closures due to financial strain.

Skakov and Suleimanov also point to other problems small businesses may face after revising the VAT threshold. These include increased costs for accounting and lawyers, more frequent claims from tax authorities, and mass liquidation of SMBs.

The petition has already gathered the minimum number of signatures required for registration, but it is still under moderation.

Original Author: Nikita Drobny