Kazakhstan scraps plans to raise VATThe rate of the value added tax (VAT) in Kazakhstan will not be increased, Prime Minister Olzhas Bektenov said.“Following the instruction from the head of state, the rate of the value added tax will not be raised. The ministries of national economy and finance will need to plan expenses and revenues in the government budget properly and adequately,” Bektenov said at a Tuesday meeting of the government.The prime minister said that effective measures needed to be taken to improve tax and customs administration, mainly through digitalization.“At the same time, we need to strengthen the financial discipline, eliminate any unproductive expenditures and increase the efficiency of budget spending,” Bektenov said.The prime minister added that all possible efforts should be taken to support a high economic growth and to ensure necessary coordination and control in the respective economic sectors.“Each minister and the regional governors are to be personally responsible for achieving the goals,” Bektenov said.President of Kazakhstan Kassym-Jomart Tokayev said at an expanded meeting of the government on February 7 that he was discontent with the current progress in formulating a new Tax Code, stressing the importance of striking a balance between investor-friendly policies and maintaining necessary budget revenues.Tokayev acknowledged the opinion within the business community that the Tax Code primarily focuses on raising tax rates. “Raising the VAT from 12% to 16% is not a cure-all solution; the VAT, which has taken on a different nature in Kazakhstan, requires reform,” he said.The president cited experts that argue that an increase in VAT may drive up inflation, expand the shadow economy, and diminish the country's appeal to investors. (ICE ALMATY)

Fonte notizia: INTERFAX