The tax burden on farms can double
The changes of approaches to taxation of agribusiness entities were discussed at NCE RK "Atameken"
Director of the Department of taxation of NCE Zhenys Zhanbulatova spoke about the reform of special tax regimes at the first meeting of the Agribusiness Committee NCE RK "Atameken".
"It is proposed to fix the rate of the social tax in the amount of 6% of the wage fund. The payment of social security contributions remains unchanged - 5% of the wage fund. As you know, additional contributions to the Mandatory Health Insurance Fund will be introduced in 2017, and as 2018 an additional burden is put on employers. They will have to transfer contributions to the mandatory pension fund for their employees", - she said.
Director of the Department also reported that under the new regime it is proposed to retain the benefits for farms on property tax and tax on vehicles on the objects, which are used in agricultural activities. With regard to legal persons, the special tax regime will be canceled. The rate of CIT will retain at 10%, as well as the social tax at the rate of 6%.
According to Zhanbulatova, NCE conducted calculations, how to change the pressure on the entities of the agricultural sector from 2017 to 2020. "In this case, we counted taxes and contributions to the funds - pension, health insurance and social security. Analysis showed that the total increase of the burden on business is in average 1.5-2 fold. Due to the fact that there will be growth of social tax, the VAT will increase, and the peasants will have to pay land tax or a fee for land use. Such an increase will occur due to the payment of contributions to the funds", - she explained.
"For legal persons the increase is not as significant as for farmerss - the load will grow by 15-50%. In this case, the burden will increase due to the lack of benefits for CIT and VAT, as well as through contributions to the funds", - added the representative of NCE.
Zhanbulatova noted that NCE RK "Atameken" has put forward several proposals for the new tax regime. In particular, to make the rate of the social tax in the amount of 3% for small businesses and to maintain 70 per cent benefit for CIT / PIT. "As for the sales tax. We have suggested that the rate should be no more than 2.5%. The analysis has been carried out ", - she added.
Head of Tax Department also reported that the working group under the leadership of the Minister of National Economy of Kazakhstan Erbolat Dosayev presented its vision on introduction of sales tax yesterday: who will pay it and how it will be deducted. "Today we have sent the presentation to all associations. Please provide us with suggestions until March 29", - she said.
Thus, according to the ministry, it is assumed that payers of sales tax are all persons who sell their products, as well as those who import goods. At the same time there will be no special registration required, everyone will pay this tax. During the sale of goods the object will be the value of goods and during import - the cost of imported goods. This sales tax is levied at each stage of sale. The rate will be 5%.
However, as it was noted by Zhanbulatova, according to industry associations, the introduction of the sales tax will cause a rise in prices for domestic products. "For example, if you take milk, it passes 4-5 hands: the peasant farm, then transportation, processing, wholesale and retail. It is clear that there will be a price increase. In this regard, the competitiveness of Kazakh goods will decrease", - she said. NCE has already expressed its concerns to the Ministry of National Economy.
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