ASTANA — The Kazakh Minister of National Economy Alibek Kuantyrov convened with the International Monetary Fund (IMF) mission, led by Nicolas Blanchet, on Nov. 10. According to the ministry’s press service, the IMF supported raising the value-added tax rate (VAT) from the existing 12% to 16% arguing that such a decision will bolster the competitiveness of local producers.
Blanchet expressed the IMF’s readiness to provide technical support for the ongoing reforms.
Photo credit: Kazakh Ministry of National Economy
Kuantyrov and the IMF mission primarily focused on the future economic trajectory of Kazakhstan, along with the proposed reforms outlined in the new Budget and Tax Codes. Among the key agenda items were deliberations on the potential increase in the VAT, the stratification of individual income tax rates for highly profitable sectors, the introduction of a progressive scale for personal income tax, taxation of luxury goods, and the incorporation of IMF recommendations into the new Budget Code.
Minister Kuantyrov reported optimistic figures, stating that a 6% economic growth and a doubling of GDP by 2029 were attainable goals, primarily through stimulating investments in fixed capital. The new tariff policy was identified as a key source of investment.
Minister Kuantyrov reported optimistic figures, stating that a 6% economic growth and a doubling of GDP by 2029 were attainable goals, primarily through stimulating investments in fixed capital.
Photo credit: Kazakh Ministry of National Economy
Blanchet expressed the IMF’s readiness to provide technical support for the ongoing reforms. He emphasized the organization’s commitment to assisting Kazakhstan in achieving its economic objectives.
The IMF mission is scheduled to conclude on Nov. 21, following which a Final Statement summarizing the outcomes and agreements reached during the discussions will be prepared. The collaboration between Kazakhstan and the IMF signals a concerted effort to bolster the nation’s economic development and implement strategic reforms.
