Prime Minister Olzhas Bektenov held his inaugural Government meeting where he announced that there would be no increase in the value-added tax (VAT) rate in Kazakhstan, QazMonitor reports.
On the instructions of the Head of State, there will be no increase in the rate of value-added tax. We must look for other ways to replenish the revenue part of the budget. The Ministries of National Economy and Finance need to ensure quality planning of both expenditure and revenue parts of the republican budget. It is important to take effective measures to improve tax and customs administration, primarily through digitalization.
The Prime Minister stressed the importance of enhancing financial discipline and instructed to eliminate unproductive expenses and improve the efficiency of state budget expenditures.
"I want to emphasize once again that we should make maximum efforts to ensure a high rate of economic growth. Each minister and akim of the region are personally responsible for achieving the set goals," Bektenov concluded.
The Ministry of National Economy had previously previously suggested a VAT rate increase in Kazakhstan from 12% to 16%.
The proposed reform had been expected to be carried out as part of the new Tax Code, which is due to be introduced in 2025. The Kazakh business community, as well as industry experts, strongly opposed the VAT increase.