National Bank Head: Planned Tax Reform May Curb Inflation but Slow Growth

Expectations surrounding Kazakhstan’s upcoming tax reform remain mixed: economists warn it could slow growth, while the National Bank says it may help curb inflation, Orda.kz reports.

National Bank Head Timur Suleimenov has commented on the issue.

Speaking at the 13th Congress of Financiers in Almaty on November 14, Suleimenov addressed the paradox of Kazakhstan’s 6.5% GDP growth over the first three quarters of 2025 and the lack of improvement in real incomes.

He attributed the gap primarily to inflation, driven by both external factors and domestic policy decisions, including how National Fund resources are used.

The budget and tax reform, which has not yet been implemented but is already planned, will have a strong disinflationary effect in addition to its primary goals. A significant reduction in the budget deficit is planned, Suleimenov said.

It's clear that a tightening of fiscal policy, coupled with a moderately tight monetary policy, could reduce both economic growth and development in certain sectors. We understand this perfectly.

Still, the National Bank chief argued that the alternative — delaying reforms — would risk even higher inflation in the future.

Original Author: Igor Ulitin