Kazakh Ministry Proposes 16% VAT in Tax Code Amendments
Kazakh Ministry Proposes Increase in VAT Rate to Improve Tax Administration
The Kazakh Ministry of National Economy has recently submitted a package of amendments to the draft Tax Code to the Mazhilis, the lower house of Parliament. One of the key changes proposed in the amendments is the increase in the value-added tax (VAT) rate from 12% to 16%. According to the ministry’s press service, a reduced rate of 10% will be established for specific industries.
Additionally, the amendments include a reduction in the threshold for mandatory VAT registration from 78.6 million tenge (US$157,350) to 15 million tenge (US$30,028). The special tax regime of simplified declaration will also be limited to the business-to-consumer sector only.
If the Mazhilis agrees with the amendments, they will be forwarded to the Senate for further consideration. This move comes as part of the government’s efforts to improve the tax and budget systems, with President Kassym-Jomart Tokayev emphasizing that the VAT rate should be differentiated.
The government’s decision to increase the VAT rate aligns with broader measures aimed at enhancing tax administration in Kazakhstan. Stay tuned for more updates on this developing story.
