Drastically higher taxes on powerful cars will only be applied to 2.8% of all cars in Kazakhstan

Aug 02. Tengrinews

Drastically higher taxes on powerful cars will only be applied to 2.8% of all cars in KazakhstanThe bigger tax rates on cars powered with engines of over 3 liters will only be acute for 2.8% of cars in Almaty, Astana and other major cities of Kazakhstan, as most cars are equipped with less powerfull engines, CA-News reports, citing experts with the Center for Macroeconomic Research.

The country’s media reported earlier that Kazakhstan’s respective ministries seek to raise taxes on cars equipped with engines of 3-4 liters from the current 15 monthly calculation rates [$169] to 66 monthly calculation rates [$746] depending on the engine volume. July 26 the country’s Central Bank Governor Gregory Marchenko said the average salary in Kazakhstan stands at 105 000 Tenge ($686).

Olzhas Khudaibergenov, head of the Center for Macroeconomic Research, believes the new tax rate is a well-reasoned decision. On his Facebook he elaborated that the number of such cars stands at slightly over 103 000, with the overall number of cars reaching 3.7 million. Which is only 2.8%.

“Raising the tax is logical. The engine volume is a right criterion. The new tax rate will only be applicable to slightly over 100 000 cars, with tax rates varying for engines of between 3 and 4 liters”, the expert believes.

According to statistics, as of March 1, 2013 the number of cars in Kazakhstan stands at 3.7 million, with 507 700 cars being located in Almaty, and 239 100 being in Astana. Over half of cars (40 400) powered with engines of 3-4 liters are based in Almaty, with Astana being home в Астане to 12 500 such cars.