Kazakhstan to reduce VAT rate on medicines to 5%
Kazakhstan is set to revise VAT rates, reducing the tax on a number of medicines and medical services to 5 percent, starting from 2026, the country’s Health Minister Akmaral Alnazarova said Tuesday, Kazinform News Agency correspondent reports.
Alnazarova said: “Initial proposal to raise VAT to 10 percent was reduced to 5 percent after the talks today”.
Health services within the guaranteed volume of free medical care and mandatory social health insurance will be exempt from VAT, she said.
The Kazakh minister added that there will be a list of medicines and medical services that will not be subject to VAT, including socially significant medicines, frequently purchased medicines and medical services provided at private medical facilities.
Earlier it was reported that the Kazakh government had proposed to fix the minimum standard VAT rate at 16%, up from the current 12% as well as an intermediate rate at 10% for certain industries and a full exemption for agricultural producers.