Kazakhstan Proposes Tax Code Amendments with Increased VAT Rate
The Kazakh Ministry of National Economy submitted a package of amendments to the draft Tax Code to the Mazhilis, the lower house of Parliament, on Feb. 20. The proposed changes aim to enhance tax administration and include an increase in the value-added tax (VAT) rate from 12% to 16%.
According to the ministry’s press service, a reduced VAT rate of 10% will be applied to specific industries.
The amendments also propose lowering the threshold for mandatory VAT registration from 78.6 million tenge (US$157,350) to 15 million tenge (US$30,028).
Additionally, the special tax regime of simplified declaration will be restricted exclusively to the business-to-consumer sector.
Following the Mazhilis’s approval, the amendments will be forwarded to the Senate for further consideration.
The government previously announced plans to raise VAT as part of broader measures to strengthen the tax and budget systems. President Kassym-Jomart Tokayev has called for a thorough study of the issue, emphasizing the importance of a differentiated VAT rate.
