The Chamber of Entrepreneurs proposes to lower the VAT rate

Reducing the VAT rate from 12 to 10% will increase tax collection, reduce shadow cash flows, and accelerate economic growth, World of NAN reports.

According to Atameken NCE Presidium Chairman Raimbek Batalov, in 2005, when the VAT rate was lowered even by 1%, gross tax revenues increased by 143%.

"It is a proven practice all over the world that when the VAT rate is lowered, tax collection increases. This effect is confirmed by the experience of Uzbekistan. In October 2019, the Uzbek authorities reduced the VAT rate - from 20 to 15%. In three years, budget revenues from VAT on domestic goods increased by half - from 20.5 trillion sums in 2020 to 32.8 trillion sums by the end of 2022. VAT on imports has almost doubled over the same period," Batalov added.

In contrast, Kazakhstan's Ministry of National Economy proposes raising the VAT rate from 12% to 16% as part of the new Tax Code, which is due to come into force in 2025.

If this happens, Kazakhstan will lose its status as the country with the most comfortable tax regime in Central Asia. This will inevitably worsen the investment attractiveness of the national economy.

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