Kazakhstan: VAT Rate Undecided, Inflation Possible - Minister

Deputy Prime Minister and Minister of National Economy Serik Zhumangaryn discussed the planned VAT increase in Kazakhstan, reports Orda.kz.

According to Zhumangaryn, in most countries, the VAT rate is 20%.

This figure was also discussed in Kazakhstan, however the exact value has not yet been determined.

The Minister emphasized that the VAT increase is inevitable. Parliamentary discussions of the rate are planned for February 15-20.

The preliminary range being considered is from 16% to 20%.

According to the Deputy Prime Minister, the final decision will be made after parliamentary discussions.

Zhumangaryn stated that living in conditions where laws have loopholes allowing most entrepreneurs to avoid taxes is no longer possible.

The state must fulfill its functions: social and defense. How can this be done without collecting taxes? I think this is obvious. We are planning to increase VAT, but the final rate is under discussion. The draft Tax Code is in parliament, and we will soon enter there with amendments from the state,  said Serik Zhumangaryn at a government press conference.

Zhumangaryn also stated that the VAT rate increase would affect all sectors and every citizen.

The average burden on businesses will increase by 4%. However, end consumers will feel the main effect, as price increases will be inevitable.

The end consumer will certainly feel the price increase. The inflation corridor is expected to increase by about 4.5%. We need to offset this increase by ensuring that additional resources should primarily go towards developing the real sector of the economy, said Serik Zhumangaryn at a government briefing.

Earlier, at an expanded government meeting with President Qasym-Jomart Toqayev, Prime Minister Olzhas Bektenov spoke about the need to raise the country's VAT rate during his report.

Original Author: Zhadra Zhulmukhametova, Second Article