Toqayev Meets Business Leaders Amid VAT Rate Discussions

Qasym-Jomart Toqayev and business community representatives are meeting today at the Aqorda, Orda reports.

Key entrepreneurs from the country gathered there.

The list of invited business leaders includes:

• Timur Kulibayev - owner of Joint Resources JSC
• Kairat Mazhibayev - President of Resmi Group of Companies LLP, RG Brands JSC
• Eduard Ogay - chair of the board of directors of Kazakhmys Holding LLP
• Marat Sarsenov - founder of Istkomtrans LLP
• Nurlan Smagulov - President of Astana Group holding
• Arsen Tomsky - CEO of InDriver
• Aidyn Rakhimbayev - chair of the board of directors of BI-Group holding
• Zhumabek Zhanykulov - co-owner of Karazhal Operating, chair of the presidium of RK employers' national confederation Paryz 
• Kintal Islamov - chair of the board of Atameken-Agro JSC
• Sergey Baron - General Director of Qaraganda Pharmaceutical Complex LLP
• Raimbek Batalov - chair of the presidium of NCE "Atameken"

The dialogue is amid a Presidiumenging situation in the country following the cabinet's decision to increase VAT to 20% and lower its business threshold to 15 million tenge.

Toqayev instructed the government to work on the VAT rate issue further.

Any innovations must be based on comprehensive analysis and well-thought-out strategy. We need to explore different options considering the specifics of economic sectors. I haven't spoken about this before, as every word of mine, every statement due to my official status can be viewed as a strict instruction, but now I would like to express my view. The VAT rate should be differentiated, Qasym-Jomart Toqayev said at the meeting.

The President believes the rate proposed by the government was too high, and the reaction was quite sharp, at times too acute.

The decision on the upper limit should be made by the Government based on precise calculations, considering the opinions of qualified - I emphasize, qualified - experts, entrepreneurs, and, of course, deputies. One thing is clear: the rate proposed by the government was indeed too high. You've mentioned this figure. This was a preliminary proposal subject to discussion. I emphasize that the government's work in this direction should continue, considering all representatives' opinions. And we must reach a decision this year,  the President emphasized.

The cabinet was instructed to discuss this issue in detail with deputies and experts.

We also need to consider the proposals made during today's meeting. The state needs optimal solutions that will, on one hand, ensure favorable conditions and not create obstacles for business, and on the other hand, help bring order to the tax sphere and ensure growth in budget revenues,  Toqayev said.

Other Key Points:

• Kazakhstan needs large-scale investment projects that significant businesses can implement 
• Logistics and transport are becoming key sectors due to increased demand for transportation 
• Tourism has enormous potential but requires refinement and investment
•  A favorable business climate is necessary for sustainable economic growth
• Banks should increase business support, including through real-sector lending
• Important to control consumer lending growth and help citizens with problem loans
• Digitalization will simplify business-state interaction, reduce bureaucracy and corruption risks

Toqayev also commented on the financial situation and public debt:

I agree with the opinion that the economic situation is not as dire as some so-called 'experts' describe it. There's no point in being overly pessimistic. But we cannot let up either. The government should seek new growth points. Here, of course, the business community's role is quite significant. International financial organizations assess the level of public debt as 'low,' noting its manageability. The debt management policy will be implemented in strict accordance with established financial constraints. The budget deficit is expected to decrease due to increased revenue levels,he noted.

The President also thanked businesses for contributing to the "Qazaqstan Halqyna" fund, emphasizing that the state supports honest entrepreneurs.

Kazakhstan has entered an era of new meanings, new viewpoints, and new approaches to solving key contemporary challenges, as well as an era where established stereotypes are becoming obsolete. Therefore, the country needs to completely restructure and adapt to new realities, he said.

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