Kazakhstan Calls on Businesses to Ensure Fair Tax Payments

Kazakhstan’s Prime Minister, Olzhas Bektenov, has urged local businesses to pay fair taxes within two weeks, emphasizing compliance with tax obligations amid discussions on tax reform. The Finance Minister noted misuse of favorable tax regimes by dishonest taxpayers. With 2.3 million registered taxpayers in the country, the government has identified significant issues regarding tax compliance, particularly among small businesses.

ASTANA, Kazakhstan, February 28. In a working meeting, Kazakhstan’s Prime Minister, Olzhas Bektenov, called upon local entrepreneurs and business leaders to fulfill their tax obligations within a fortnight. Joined by Deputy Prime Minister and Minister of National Economy Serik Zhumangarin and Minister of Finance Madi Takiyev, discussions focused on necessary tax reforms and enhancing monitoring over tax revenues.

Prime Minister Bektenov addressed large company owners, warning against tax optimization schemes. He emphasized the importance of submitting additional tax declarations and making fair tax payments within two weeks, stating that failure to comply would lead the state to utilize all available measures, including fiscal and legal enforcement. He expressed readiness for dialogue, contingent upon fair business practices.

Finance Minister Madi Takiyev highlighted concerns regarding misuse of special tax regimes established to support small businesses. Unscrupulous taxpayers exploit legal loopholes to diminish their tax liabilities, often inflating costs or shifting profits to avoid VAT, thereby exploiting naturally favorable tax conditions.

At present, Kazakhstan has 2.3 million registered taxpayers, with only 137,000 accounting for VAT payments, representing a mere eight percent. Notably, 81 percent of these entities operate under a simplified tax regime, and 85 percent report incomes not exceeding 15 million tenge (approximately $30,000).

In conclusion, Prime Minister Olzhas Bektenov’s call for fair tax contributions underscores Kazakhstan’s commitment to tax reform and greater fiscal transparency. The government aims to curb the exploitation of tax laws and ensure compliance among businesses, particularly through the scrutiny of tax regimes that currently permit abuse. The situation calls for the collaboration of enterprises with tax authorities to foster a fair and equitable economic environment.

Original Source: en.trend.az