NUR-SULTAN – The operational office is set to conduct a detailed analysis of the potential impact of the country’s economy from anti-Russian sanctions, propose possible scenarios around the situation, and develop an action plan, President Kassym-Jomart Tokayev said during the meeting of the Supreme Council for Reforms on March 3, as reported by the Akorda.
President Kassym-Jomart Tokayev delivers remarks at the meeting of the Supreme Council for Reforms on March 3. Photo credit: Akorda.
Established on March 2, the operational office is in charge of carrying out anti-crisis measures related to the sanctions and their impact on the economy.
The President said that it is necessary to prepare a package of measures to support businesses. The government will also work on international taxation and transfer pricing in cooperation with the investors. This year’s national budget will also be revised.
It is proposed to increase the mineral extraction tax rates by three-fold for all types of solid minerals, said Minister of National Economy Alibek Kuantyrov. This will increase budget revenues by 300 billion tenge (US$600 million).
Photo credit: Akorda.
Kuantyrov proposed to introduce measures aimed at preventing capital withdrawal and increasing the taxation of profits of foreign-owned companies and digital mining. The additional revenues to the budget will provide control measures for transfer pricing, strengthening customs and tax control.
New approaches to investment policy were also on the agenda of the meeting.
It is expected to develop the investment ecosystem, promote the growth of investment activity of the private sector and strengthen integration into global value chains as part of the investment policy concept.
The reforms and restructuring of the Samruk Kazyna National Wealth Fund will ensure the transparent procurement process, and remove barriers for market participants in the processing and marketing of oil, gas, coal, and electricity.
The national companies include KazMunayGas, Air Astana, KEGOC and QazaqGaz, which will all be listed for IPOs.
Investments worth more than $8 billion are expected. This will allow for the launch of 24 manufacturing facilities worth 4 trillion tenge (US$8 billion) and will create 5,000 jobs.
Proposals to improve performance and supply routes will be considered for each company. 44 contracts with intermediaries involved in the process of supplying electricity to the fund’s enterprises will be terminated. This year, the economic effects of this process will exceed 2 billion tenge (US$4 million).
The Supreme Council for Reforms was established in 2020 to ensure strategic planning of the country’s sustainable development and the deepening of economic, social and political reforms. The members of the council review and adopt the suggestions for reforms proposed by the Agency for Strategic Planning and Reforms, which is responsible for analyzing the current situation, emerging trends, and international best practices.
The council is chaired by Tokayev, while Sir Suma Chakrabarti, former president of the European Bank for Reconstruction and Development (EBRD), serves as the deputy chairman.
