National Bank Supports VAT Increase to 16%

Kazakhstan's National Bank has expressed support for raising the Value Added Tax (VAT) rate to 16%, describing it as a balanced measure that will reduce reliance on transfers from the National Fund, Orda.kz reports.

Timur Suleimenov, head of the National Bank, clarified that although fiscal policy decisions fall within the government's authority, the regulator supports the move from an economic standpoint, as it helps meet the state's essential needs.

The VAT increase will come alongside improvements in tax and customs administration. Crucially, this change aims to decrease the state's dependence on the National Fund.

Economically, this is the right decision. When we withdraw money from the fund, we take it from future generations and spread it out to cover the budget deficit. Increasing the tax burden on businesses and citizens now will enable us to leave a large financial cushion for the future, Suleimenov explained.

Original Author: Olga Ibrayeva