NEM Kuandik Bishimbayev Offers Replacing Tax Incentives By Subsidies in Kazakhstan
This measure is necessitated by Kazakhstan’s accession to WTO.
KazWorld.info – The possibility of replacing tax incentives by subsidies is under consideration in the National Economy Ministry, said the minister Kuandik Bishimbayev at the conference on taxation issues.
A task force is working in the ministry at the adaptation of industries to the WTO, who are to develop a package of measures. It will also apply the free warehouses regime, and other issues which we will have to give up in the framework of the WTO accession, the Minister added.
To stimulate the companies looking to invest in the subsoil use, exemption from CIT is envisioned at the debt relief in the absence of a commercial discovery on the investment financing.
“We understand that the demand for our raw materials will slow down, it is slowing down in the world; development of alternative energy sources should be tried. Manufacture, production, export are the resources that we avail of. For this it is necessary to change the approach, to move away from tax. The main principle we go by is that in order to attract investment in the development of new fields, we should move away from fixed income taxation, said Bishimbayev.
For other types of taxes no significant changes are planned, he added. Broaching taxation of farmers, the minister said that the issue is also being considered.
Finally Bishimbayev said that the rate of personal income tax is under a big debate at the moment. Decision is also to be made on sales tax before the end of the year.