2000-01-24 Kazak Politics & MacroEconomics - Income Minister
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Income Minister Says Tax Rate Decrease a Possibility
“We can now speak about a possible decrease in rates” of the three types of taxes in Kazakhstan – VAT, individuals’ income tax and social tax, said Zeinulla Kakimzhanov, the Minister of State Income. Kakimzhanov was speaking at a conference on developing Kazakhstan’s new tax code.
The Minister believes that the current structure of individuals’ income tax is generally correct but he admits that the scale of rates within this tax should be reviewed. High inflation rates, the tenge’s devaluation, and “the absolute volume of salaries” should be taken into consideration.
Mr Kakimzhanov said that the government agrees, in principle, that the social tax rate should be decreased to its previous level, but only if the budget can be fulfilled. He said this tax can be differentiated.
As for the existing 20% VAT rate, the Minister said it is unacceptable considering the high value of money in the country, the low effectiveness of the economy, and the long term of capital turnover. However, he did not specify a new VAT rate, saying that it is a “very hot issue”. (Interfax)