Tax reform in Kazakhstan: proposals for new VAT rates
Kazakhstan has started an active discussion of tax reform centered on differentiation of VAT rates. Minister of Finance Madi Takiyev and Vice Minister of National Economy Azamat Amrin met with business representatives to discuss the Government’s proposals. The meeting was supported by Atameken and gathered more than 150 participants, including entrepreneurs, associations and industry associations.
According to Finance Minister Madi Takiyev, the country’s tax system should be clear and balanced. It is important to take into account the interests of both the state and business. VAT is one of the key sources of budget replenishment, and its differentiation will reduce the country’s dependence on oil revenues and finance important state projects.
Vice-Minister of National Economy Azamat Amrin voiced the main innovations:
– Basic VAT rate of 16%
– Intermediate rate of 10% for certain industries
– Full VAT exemption for agricultural producers.
Currently, peasant farms in the agricultural sector do not pay VAT, while legal entities enjoy tax exemptions. The new reform enshrines VAT exemption, which will make Kazakhstani agricultural products more competitive.
There was no discussion of changing the threshold for VAT registration. We would like to remind that earlier the government proposed to increase the VAT rate from 12% to 20% and reduce the threshold of VAT registration from 78mln 640K tenge in 2025 to 15mln tenge.
Article is prepared by Ekaterina Kassumova,
Director of FChain Kazakhstan
11th of February 2025
