Amendments to Tax Code providing for VAT increase from 12% to 16% submitted to MajilisA package of amendments to the draft Tax Code, providing for an increase in the VAT rate from 12% to 16%, has been submitted to the Majilis of the Parliament of Kazakhstan, the press service of the Ministry of National Economy of the Republic reported."On February 20, the Ministry of National Economy submitted a package of amendments to the draft Tax Code to the Majilis of the Parliament of the Republic of Kazakhstan. The amendments are aimed at improving tax administration," the report said.The main changes include an increase in the VAT rate from 12% to 16%, with a reduced rate of 10% for certain industries.The changes also include a reduction in the threshold for mandatory VAT registration - from 20,000 MCI (78.6 million tenge) to 3,800 MCI (15 million tenge), and a restriction on the application of the special tax regime of simplified declaration - it will be available only to the B2C (business-to-consumer) segment.An increase in the VAT rate from the current 12% is being discussed in Kazakhstan. Initially (in 2023) it was planned to raise VAT to 16% and in early 2025 to 20%, while reducing the burden on the Wage Fund (WF), which has caused concern in the Kazakh business community.On February 7, Kazakh President Kassym-Jomart Tokayev suggested that the VAT rate be differentiated, noting that the 20% rate proposed by the government was "too high". The government later proposed a basic VAT rate of 16%, a preferential rate of 10% for a number of industries, and a zero rate and full VAT exemption, particularly for agricultural producers. Businesses that currently operate in the retail mode with an income tax rate of 4% will not be transferred to VAT. (ICE ALMATY)

Fonte notizia: INTERFAX