Kazakh PM explains the need of VAT hike

Prime Minister of Kazakhstan Olzhas Bektenov Tuesday proposed an increase in the VAT rate, Kazinform News Agency reports.

Kazakh PM explains the need of VAT hike
Photo credit: Pixabay.com

In his opinion, this will reduce the tax burden on the wage fund, which in turn will positively affect the cost of goods.

“The main tax burden falls on the wage fund and therefore on the cost of goods. Even before the product hits the shelf, the entrepreneur is forced to pay most of the taxes. The Government proposes to reduce the burden on the wage fund by shifting it to sales. For this to happen, it is necessary to increase the VAT rate,” Olzhas Bektenov explained at an expanded Tuesday session of the Kazakh Government.

The Kazakh Government is confident that the initiative is part of a broader tax reform aimed at improving the economic situation in the country and creating comfortable conditions for business.

Earlier, Prime Minister Bektenov presented a detailed report on the economic situation in the country at the expanded session of the Government under the chairmanship of President Kassym-Jomart Tokayev.

As reported previously, at the expanded session the Head of State insisted that efficiency of the Government and akims should be assessed based on people’s living standards.

Currently reading