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Ablay Myrzahmetov: "It is very important for business to expand the horizons"

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The Chairman of the Board of NCE RR "Atameken" Ablay Myrzakhmetov, speaking at a meeting of the Senate of the Kazakh Parliament, dedicated to the protection of the rights and interests of business and the interaction and the state in this sphere, identified six key directions.

The first direction - is taxation. It is necessary to improve the tax administration in this area, to optimize the tax benefits. "Today we need a sober, objective analysis of these areas. Tax measures have to work just to attract investment, the development of the manufacturing sector, the priority sectors of domestic economy and business", - said Myrzakhmetov.

Second – is deregulation and liberalization of the SME sector. "Here, the most important work – is a large-scale revision of the supervisory functions of state bodies, as well as the frontal reduction of all types of business costs", - said the Chairman of NCE.

The third direction – is a decline in the proportion of state involvement in the economy. "There are more than 600 areas, in which state and quasi-state enterprises could engage in various forms of business activity, they were reduced twice at the end of 2015. Now there are more than 300. However, we believe that this work should continue", - said A. Myrzakhmetov. In his opinion, "quasi-public sector today hampers the development of business". According to the head of the Board of NCE, it is necessary to optimize and to transfer state functions in a competitive environment, to form an exhaustive list of objects of state property and quasi-public sector.

Speaking about the increase of the availability of finances, Ablay Myrzakhmetov noted that "changes of the mandates of the National Bank of the Republic of Kazakhstan is important". According to him, the business, especially in rural areas, is experiencing a shortage of available funds for development. "The National Bank of Kazakhstan has to deal not only with issues of inflation targeting, but also the economic growth. Availability of capital is crucial. It is necessary to reduce the base rate, thereby increasing the availability of finances", - said Myrzakhmetov.

Another direction determined by NCE is improving the efficiency of state measures. "We believe that it is necessary to analyze the effectiveness of state support measures for business, to revise the mandates of institutions", - said Myrzakhmetov.

The sixth direction - access to market information. Ablay Myrzakhmetov proposed the creation of "Single window" the Government for business (electronic database on land, mineral resources, infrastructure, legal information, etc.), as well as export markets. "It is essential to expand business horizons", - he said.

Ablay Myrzakhmetov stopped separately on increasing competitiveness and import substitution. According to him, there are no sectoral development programs, transparent information on procurement plans, the mechanism of centralized procurement, there is also no involvement of the backbone enterprises in the development of local content, the practice of off-take contracts to domestic poducers, the presence of international obligations in conducting procurement.

In this regard, NCE offers to develop sectoral development programs, to conclude the Agreement between the SPD and the domestic producers with the approval of work programs, improve the work load of domestic producers by entering into off-take contracts, develop and implement an industrial certificate, as well as to expand the list of goods, works and services within the Registry of qualified potential suppliers.

Speaking about privatization, A.Myrzakhmetov told about the activities of NCE in this area. Thus, the law takes into account proposals of the increasing transparency, the possibility of decommissioning of objects, improvement of pre-sale preparation, privatization through KASE. NCEP joined the project office of JSC "NMH" KazAgro" and IFPC, commissions on the sale of assets at government agencies, national companies and local executive bodies. On the proposal of NCE the national companies attract participants of the domestic securities market in the privatization of large objects.

Now "Atameken" proposes to conduct a full audit of all development institutions and subordinate institutions, reduce the number of activities for organizations with state participation of up to 100 to 2018, to include representatives of NCE in the composition of project offices of JSC "National Welfare Fund" Samruk-Kazyna" and JSC "NMH" Baiterek.
The head of the Management Board of NCE expressed his opinion on public-private partnership. According to him, there is a number of problems: there is no system of long-term orders, non-transparent process of state compensation, there is no simple mechanisms for small forms of PPP.

What does NCE propose? "Greatly simplify the PPP project approval procedures, especially for small forms of PPP. Together with the MNE and Akimats establish a central register of PPP projects. Continue work on the optimization and harmonization of legislation in the field of PPP. Transfer expertise of PPP projects to financial institutions, excluding the effect of the "bottleneck" in the form of subsidiaries of Akimats", - listed the recommendations of NCE Ablay Myrzakhmetov.

One of the important issues is the support for exports. As it was noted by the head of the Board of NCE, there are also a number of problems. This is - the lack of harmonized authorization documents for a number of products with export potential to China, including meat and dairy products; limited information about Chinese enterprises with import quotas for the import of wheat, flour and rice in China; lack of integrity verification mechanism / of Chinese entrepreneurs, etc.

In this regard, "Atameken" offers to generate a graph of priority product groups for which the Ministry of Agriculture should remove barriers in trade with China. MNE RK and the Ministry of Agriculture should receive from the Ministry of Commerce of PRC information about Chinese enterprises with import quotas for the import of wheat, flour and rice to China, followed by dissemination of these materials to the members of NCE RK "Atameken". We also need to bring national industry standards to international standards, to create a B2B platform that will simplify the search for export demand.

A.Myrzakhmetov also voiced recommendations for further work to reduce the pressure on business, offering systematic measures to deregulate business. According to him, it is necessary to optimize authorization procedures, revision of control and supervisory functions. "Last year, in conjunction with the Prosecutor General's Office we initiated this work. At present, out of 28 thousand requirements more than 11 thousand can be eliminated", - said Myrzakhmetov.

Reporting on the service support of business, the Chairman of the Board of NCE noted that more than 40 thousand entrepreneurs obtain services within 7 directions. Business training is on now.

 


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