NCE "Atameken" begins the development of the new Tax Code of the Republic of Kazakhstan, on the basis of the position of the business community

The National Chamber of Entrepreneurs of Kazakhstan "Atameken", taking into account the public debate held on tax issues, starts work on the preparation and wide discussion of the draft new Tax Code.

As you know, the forthcoming reduction in the VAT threshold caused a serious public outcry. A group of Kazakh economists made a joint statement, noting the risks of further increase of the tax burden for small and medium-sized businesses. Specific issues related to the expected increase of the load on the wage fund, constant complication of the tax legislation and rising business costs related to its observance.

NCE "Atameken", supporting this statement and taking into account the importance of the issue for the enterprise, has taken the initiative to develop a new Tax Code, based on the position of the business by 1^st of May 2017. To do this, an expert group was set up at NCE. Oraz Zhandosov, Rakhim Oshakbayev, Mukhtar Tayzhan, Murat Temirkhanov, Meruert Makhmutova, Magbat Spanov, Zharas Akhmetov, Galim Khusainov, Rasul Rysmambetov, Anuar Ushba, Darmen Sadvakasov and other experts have already confirmed their participation in the work of the Expert Group. Experts of NCE and representatives of accredited business associations by NCE will also take part in it.

"For the first time, with the support of the Government of the Republic of Kazakhstan we have an opportunity to discuss and to develop such an important document as the Tax Code based on the position of business. Of course, hot discussions with the authorities will take place. We are ready to listen to their arguments and to understand the position of public. As a result, I think, there will be prepared a constructive and balanced document", - said the Chairman of NCE RK "Atameken" Ablay Myrzakhmetov, speaking at a briefing at the Service of Central Communications.

 Head of Board of Trustees of the Center for Applied Research "Talap" Rakhim Oshakbayev believes that the tax legislation of Kazakhstan – is unnecessarily complicated. According to him, now in Kazakhstan there are 13 kinds of taxes, 16 kinds of other compulsory deductions plus 7 extra-budgetary contributions. In total, there are 36 kinds of taxes and other obligatory payments. "We see a serious complication of the tax legislation, which should not occur, since there is no serious complication in the structure of our economy. Even after the codification of the Tax Code in 2001, its volume has increased by 3 times", - he said.

"We need to change the philosophy of the Tax Code. It should advise, assist, facilitate", - said Ablay Myrzakhmetov.

Responding to questions of journalists, the head of the Board of NCE noted that in the preparation of the Tax Code will be studied not only international experience, but also carried out their own research, taking into account country-specific. "A research should be a prerequisite for the expert work. Just yesterday, we held talks with potential sponsors of the research, who are willing to undertake this work. The specificity of our country should be precisely studied. We have different industry sectors, own economy structure. We have a very large segment of small business, where people actually simply provide themselves with work through individual entrepreneurship. We need a simple, intuitive mechanism. You do not need to refer them to VAT payers, it complicates their lives, creates barriers. One of our studies showed that many Kazakhs want to start a business, but are afraid", - he said.

Ablay Myrzakhmetov also mentioned that one of the amendments to the Tax Code is related to tax appeals. "We just saw that entrepreneurs have nowhere to go for appeal. You complain to the district, the district – to the region. It is circle. Then you go to court. Statistics show that not more than 10% of the court decisions are ruled out in favor of the taxpayers. Now, this institution is in the Tax Code. Starting from next year, it will be transferred from the State Revenue Committee to the Ministry of Finance. "Atameken" will form this tax committee of independent experts, - he explained.

The Chairman of NCE also said that "Atameken" has created a special group "Tax Code for business" on Facebook to discuss basic approaches and the draft text of the new Code. In the near future the draft of terms of reference will be posted for the public debate. According to him, entrepreneurs and experts are also open through all channels of communication, the official website www.palata.kz and call-center by number 59-79-60.

Ablay Myrzakhmetov urged everyone to take part in the work of the expert group. "We are doing it openly so that every inhabitant of the country can make suggestions", - he said.

"I hope that the concept of the new Tax Code will contain simple rules for small business, we will be heard by the Government and our proposals will be supported", - added the Deputy Executive Director of the Forum of Entrepreneurs of Kazakhstan Gulnara Kuanganova.