GOVERNMENT: Kazakhstan protects national brands and increases transparency in sub-surface use

*** Last week President Nursultan Nazarbayev delivered his annual State-of-the-Nation Address “Kazakhstan In a New Global Reality: Growth, Reforms and Development” during which he gave a number of tasks to the Government. In particular, the Head of State charged the Cabinet to analyse the terms of the legalization program and, if required, to strengthen guarantees for its participants.

“The main objective of the Government must be to increase tax sphere's transparency. Only in this case, every market participant will be keen on paying taxes in full. The Government must ensure effectiveness of the tax administration system. The deadline of the legalization is 31 st December 2015. Additional incentives such as confidentiality and protection from legal prosecution have been introduced. Now I am charging the Government to analyse the terms of legalization and strengthen guarantees for its participants, if necessary,” N.Nazarbayev said.

Kazakhstan is going to introduce the universal income and expense declaration since the 1 st January 2017, the President pointed out. After then, the Government will take measures on disclosure of accounts and assets, wherever they are, in order to find out their origin and taxation. OECD will be attracted to this, if necessary. In general, more than 7 trln 500 bln will be spent for the implementation of the President’s Address.

*** Kazakhstan Prime Minister met with his Dutch counterpart Mark Rutte, who had arrived in Astana with an official visit. The parties discussed the issues of political and economic cooperation and noted that the Extended Agreement on Cooperation between Kazakhstan and the EU would give a new impetus to political and economic ties between the two countries. *** Chairman of the Committee for Regulation of Natural Monopolies and Protection of Competition of the Ministry of National Economy of Kazakhstan Serik Zhumagarin informed at the CCS briefing that the price regulation would be abolished in Kazakhstan since January 1, 2017. However, prices will be regulated in highly-concentrated markets since January 1, 2016 already. Only antimonopoly instruments of regulation will be left since January 1, 2017. *** President N. Nazarbayev held a meeting with heads of state bodies and commanders of special forces units. Head of the Presidential Administration Nurlan Nigmatulin, Presidential Aide and Secretary of the Security Council Nurlan Yermekbayev, heads of the National Security Committee, Defense Ministry, Internal Affairs Ministry and the State Guard Service took part in the meeting. The participants of the meeting discussed the issues of the state of combat readiness and future improvement and development of the special forces of the ministries and departments, their interaction and their materiel and technical support.

The Head of State reminded that the special forces units were responsible for difficult combat operations in Aktobe and Almaty regions, in Almaty city, and the officers of "Arystan" special unit had their first combat experience in far 1992 during the hostage rescue operation in Shymkent.

"Thus, we may need the experience and skills of special forces units at wartime and when we live in peace. The work of officers of special forces means great physical and psychological load and risk for their lives and families," N. Nazarbayev said.

Upon completion of the meeting the Head of State gave a number of specific instructions to heads of some responsible state bodies and commanders of the special forces units. *** Besides, the Ministry of Investment and Development held the first open auction in the sphere of subsoil use based on the English method. The total price of 49 auction items reached KZT 190 million. 106 applications for participation in the auction from 92 companies were submitted. The total amount of the proceeds made KZT 1.415 billion. Holding of the auction became one of the mechanisms of the work of the Ministry on increasing transparency in the sphere of geology and subsoil use.