Entrepreneurs in the country do not agree with the increase in the value added tax rate as it will increase the cost of domestic products and reduce profits, World of NAN reports citing the NCE.
The new Tax Code will see an increase in the value-added tax from 12% to 16% when it comes into effect in 2025. Entrepreneurs are now worried about this news. According to business citizens and large manufacturers, if the value-added tax on the goods they buy goes up, business revenues will go down.
"Raw agricultural products are not subject to value-added tax. For example, our cooperative produces, processes dairy products. For example, Baiterek Agro takes a liter of milk from a private farmer for 200 tenge, processes it and sells it for 300 tenge. And if the new law comes into force, our production company will have to pay taxes both for 200 tenge of purchased raw materials and for 100 tenge of income received from the products," explained the founder of the Baiterek Agro cooperative.
In his opinion, raising the VAT rate will have a negative impact, especially on agricultural products. The cost of goods will change, and the producer's revenue will decrease. And no one will be engaged in unprofitable business.
Entrepreneurs want the VAT rate not to increase. They believe that restraining the VAT rate would support domestic producers.