Kazakhstan's Economy Ministry Submitted Second Package of Tax Legislation Amendments

Among the proposed changes announced on 26 April are a differentiated personal income tax system, new excise taxes on energy drinks, and the taxation of income from government securities, Orda.kz reports, citing the Ministry.

One of the key provisions of the amendments concerns the establishment of differentiated rates of individual income tax depending on the income of workers. Citizens with lower incomes will pay the individual income tax at a lower rate than highly paid workers,
the Ministry said. 

It is also proposed to optimize deductions available to citizens for expenses such as medicine, education, and social contributions.

A single basic deduction of 30 MCI per month is being introduced instead of the current one of 14 MCI. All additional deductions will be excluded,
the announcement says. 

The government plans to impose excise taxes on energy drinks, with the stated aim of promoting public health. The proposed rates were not disclosed.

The amendments would also introduce taxation on income derived from government and quasi-government securities.

This is an additional source for the state budget,
 the Ministry emphasized.

As part of a broader reform of the oil industry’s tax system, a so-called “tax maneuver” is planned — shifting the tax burden from export payments, including rent taxes, toward taxes levied during oil production.

This should simplify the system and stabilize tax revenues to the budget,
the Ministry of Economy noted. 

Altogether, the government has proposed 71 amendments to the draft of the new Tax Code and related legislation, as well as 67 amendments to the current Tax Code.

Photo: Natalia Ovchinnikova