Qasym-Jomart Toqayev Addresses Tax Reform and Global Economic Risks During Visit to Shymkent

Today, April 11, Qasym-Jomart Toqayev arrived in Shymkent to review the city’s socio-economic development, Orda reports.

Speaking at a meeting with residents, the President of Kazakhstan addressed domestic and global economic issues.

Toqayev expressed dissatisfaction with the current Tax Code, describing it as overly complex and ineffective.

The current code is overloaded with numerous amendments, exceptions, and the like. It has turned into a document whose practical use is questionable. It’s difficult to read and understand; it is disputed by civil servants and entrepreneurs, Aqorda reports Toqayev as saying.

He noted that some tax breaks have negatively impacted specific entrepreneurs, creating an unequal burden:

The tax burden has become unfair because unscrupulous businesspeople have found loopholes in the code. <...> Kazakhstan must not be turned into an offshore zone. The new Tax Code should ensure a balance between the interests of business and the state, and encourage entrepreneurs to pay taxes honestly. 

Toqayev is confident that the updated code will increase the state budget, strengthen investment potential, and improve the well-being of Kazakh citizens. He added that tax reform will also support economic growth and business development.

In the same address, Toqayev commented on international developments, notably supporting U.S. President Donald Trump’s temporary moratorium on raising import tariffs.

We welcome the rational decision of President Trump to declare a 90-day moratorium to clarify the positions of all countries involved in the trade conflict and, if possible, begin negotiations. Experts warn that the introduction of mutual tariffs could provoke a serious downturn in the global economy and irreversibly undermine all the rules of international trade with all the ensuing consequences, including armed conflicts,Toqayev noted. 

He emphasized that a global trade war would impact all countries, without exception. Referring to market instability earlier in the week, he cited Trump’s announcement as a temporary stabilizing factor.

It is obvious that the world is moving towards a policy of tough tariff confrontation. This is not just another recession, but a possible fundamental crisis affecting the foundations of the global economy with grave consequences for the entire system of international relations. We are carefully analyzing the situation and taking into account all possible risks. No matter how difficult it may be, Kazakhstan will not deviate from the planned strategic course of comprehensive modernization,Toqayev assured. 

According to the President, Kazakhstan will continue developing infrastructure, transport, industry, agriculture, and other key sectors while fulfilling all social obligations.

Recently, Toqayevinstructed the government and regional authorities to urgently finalize an action plan in response to the challenging global economic situation.

Original Author: Nikita Drobny, second post