Ministry of National Economy: VAT increase will not affect agricultural goods

Vice-Minister of National Economy of Kazakhstan Azamat Amrin spoke about the impact of the increase in value added tax, reports World of NAN.

According to the vice-minister, raising the VAT rate to 16% will not lead to deviation of inflation from the planned corridor.

"It will affect inflation within one percentage point and will not affect agricultural commodities. As domestic farmers enjoy favorable tax regimes. Given that the share of food products in the structure of Kazakhstan's imports in 2022 amounted to 9.4%, the increase in the VAT rate on imported goods will not have a significant contribution to inflation," Amrin explained.

He also voiced the positive effects of the VAT rate increase.  Such as strengthening the budget's ability to finance social obligations and strengthening the competitiveness of domestic goods.

"In our opinion, increasing the burden on imported goods will enable our domestic producers, who enjoy tax benefits and subsidies, to increase their production to replace imported goods," the vice-minister added.

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