ASTANA – The Kazakh Ministry of National Economy submitted a package of amendments to the draft Tax Code to the Mazhilis, a lower house of Parliament, on Feb. 20. The changes, aimed at improving tax administration, included the increase in the value-added tax (VAT) rate from 12% to 16%.
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The ministry’s press service clarified that a reduced rate of 10% is established for specific industries.
The amendments involve reducing the threshold for mandatory VAT registration from 78.6 million tenge (US$157,350) to 15 million tenge (US$30,028).
The special tax regime of simplified declaration will also be limited to the business-to-consumer sector only.
If Mazhilis agrees with the amendments, they will be sent to the Senate for further consideration.
The government previously announced plans to increase VAT as part of broader measures to improve the tax and budget systems. President Kassym-Jomart Tokayev has instructed further study on the issue, emphasizing that the VAT rate should be differentiated.
