Toqayev Tasks PM with Adjustment of Economic Reform Program to Support SMEs and Incomes

President Qasym-Jomart Toqayev has instructed Prime Minister Olzhas Bektenov to prepare a plan of concrete measures to adjust the government’s economic reform program by the end of the workweek. The president called for a policy review prioritizing small and medium-sized enterprises (SMEs) and citizens’ incomes, Orda.kz reports.

According to the head of state, the reform policy as a whole remains consistent with Kazakhstan’s national interests and global economic trends. However, Toqayev emphasized that its implementation requires fine-tuning to ensure stronger support for small and medium businesses, improvement of the investment climate, and overall economic resilience.

Several months earlier, Toqayev signed a new Tax Code, which introduced significant fiscal changes. The document raises the basic VAT rate from 12% to 16%, introduces a progressive income tax, and adds a “wealth tax.” These amendments are scheduled to take effect on January 1, 2026.

Following the code’s adoption, representatives of the business community voiced concern over the potential impact on entrepreneurs. Experts have warned that the upcoming changes may trigger a “period of survival” for small and micro-enterprises. They note that the new system will complicate accounting, raise administrative costs, and deprive many businesses of access to simplified tax regimes.

According to estimates from the Ministry of National Economy, approximately 300,000 companies could shut down after the new code takes effect. Government officials have acknowledged the likelihood of widespread closures, describing it as a “natural market cleansing.”

Meanwhile, despite continued GDP growth, real household incomes in Kazakhstan are declining amid double-digit inflation. Analysts from Halyk Finance report that more than half of employees earn below the national average, while 52.5% of total household spending now goes toward food.

Original Author: Ruslan Loginov