Kazakh government suggests setting minimum standard VAT rate at 16%
The Kazakh government suggested Monday 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, Kazinform News Agency reports.
During a meeting on Monday, Finance Minister Madi Takiyev and National Economy Vice Minister Azamat Amrin discussed the government’s proposals on differential VAT rates under the country’s ongoing tax reform with over 150 officials of business, associations, public and industrial societies joined.
Takiyev called for a unified position for a ‘straightforward, clear and precise Tax Code’.
We propose to fix the minimum standard VAT rate at 16%, a full exemption for agricultural producers and an intermediate rate at 10% for certain industries. So, differential VAT rates proposed by the government are 16%, 10%, 0% and a full exemption, said Amrin at the meeting.
A list of industries for which a 10% VAT rate will be introduced is under discussion with business.
Under its tax reform, Kazakhstan seeks to increase tax collections to up to 4-5 trillion tenge annually, reducing the country’s dependence on its National Fund, state debt as well as funneling additional funds into financing investment projects, development institutions, utilities and heating system modernization.
Earlier, President of Kazakhstan Kassym-Jomart Tokayev slammed the government’s proposal to raise the VAT rate to 20%.
