Kazakh government proposes abolishing social taxes and mandatory pension contributions by employers in exchange for VAT rate riseThe government of Kazakhstan will abolish the social taxes and the mandatory pension contributions paid by the employers in exchange for raising the VAT rate, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said."As part of the [tax] reforms, we plan to raise the VAT rate. However, it wouldn’t be right to try to solve the government’s problems only by raising taxes. Of course, the businesses will incur additional costs after the VAT rise, and the government should compensate them for it,” Zhumangarin said at an expanded meeting of the government on Tuesday.If the VAT rate is raised, "we are ready to significantly reduce the burden on the wage fund by about 10% to 30% by abolishing the social tax and the mandatory pension contributions by the employers", he said."The budget will be able to cover these expenses. We understand that the social tax is the main source of income for the local budgets, so we are mulling over the redistribution of other taxes from the government budget to the local budgets. We are ready to compensate them for the social taxes. Future revenues will allow us to do this. As a result, the tax system of Kazakhstan will be rebalanced," Zhumangarin said.However, he didn’t specify the new possible rate for VAT. (ICE ALMATY)

Fonte notizia: INTERFAX