Kazakhstan’s Prime Minister has urged businesses to pay fair taxes within two weeks, emphasizing compliance to avoid penalties. A growing concern over tax optimization abuses has prompted this call, with only 8% of taxpayers currently contributing VAT. The government seeks to reform tax practices while ensuring support for small businesses remains intact.
On February 28, Kazakhstan’s Prime Minister Olzhas Bektenov convened a meeting with Deputy Prime Minister Serik Zhumangarin and Finance Minister Madi Takiyev to discuss tax reform and stricter controls on tax revenue collection. The Prime Minister highlighted the importance of fair tax contributions from businesses and emphasized the urgency for companies to address their tax obligations promptly.
During the meeting, Bektenov specifically addressed large business owners utilizing tax optimization schemes. He warned that tax authorities would issue notifications demanding additional tax payments within two weeks. He asserted, “If these actions are not taken, the state reserves the right to apply all available resources, including fiscal and law enforcement.”
Minister of Finance Takiyev noted that certain special tax regimes originally designed to assist small businesses were being exploited by some taxpayers to evade taxes legally. He elaborated on how firms inflate documentary costs to reduce taxable profits, often transferring goods between companies to avoid VAT obligations.
Currently, Kazakhstan has 2.3 million registered taxpayers; however, only 8% are VAT contributors. Moreover, a significant 81% of businesses operate under a simplified tax regime, suggesting widespread reliance on easy tax management strategies. This points to a critical need for reform to ensure equitable tax practices across the board.
The recent call by Kazakhstan’s leaders for fair tax contributions among businesses highlights growing concerns over tax optimization abuses. As the government moves to enforce stricter regulations, companies must comply to avoid penalties. This initiative reveals the government’s focus on improving tax revenue while maintaining support for legitimate business operations.
Original Source: en.trend.az
