President of Kazakhstan instructs Govt to postpone introduction of additional 5% pension contribution and abolish taxes for SMEs
President Tokayev charged the Government to postpone the introduction of extra pension contributions to the amount of 5% and exempted small and microbusinesses from tax deductions until 2023.
The Head of State Kassym-Jomart Tokayev said this while delivering the State-of-the-Nation Address at a joint session of the Houses of Parliament, akorda.kz reports.
"I instruct to develop a legislative basis for exemption of micro- and small businesses from tax on their core activities for three years. From January 2020, my decision on a three-year ban on inspections of micro and small businesses will come into force," the President said.
Continuing the topic of SMEs, the issue of raiding small and medium businesses was raised.
"In this regard, additional legislative measures are needed. The Parliament and Government should propose a solution to this problem. At the same time, it is necessary to strengthen the resistance to the shadow economy, tighten the fight against the withdrawal of capital and tax evasion. The system of state financial support for small and medium-sized businesses should be reloaded, giving priority to new projects," Tokayev said.
The head of state also answered the main question that concerns entrepreneurs, whether the introduction of additional pension deductions in the amount of 5 percent will be possible.
"I believe it is necessary to modernize the tax system with a focus on a more equitable distribution of national income," the President noted.
Speaking of risks, the President noted that employers would lose incentives to create jobs and raise wages, and businesses would go into the shadows.
"Therefore, I instruct the Government to postpone the introduction of additional pension contributions in the amount of 5 percent until 2023. Then we will return to this issue. During this time, the Government, business representatives, and experts should calculate the options and come to an agreed decision taking into account the interests of both future pensioners and employers. The Government should ban all payments that are not stipulated in the Tax Code. These are, in fact, additional taxes, " Tokayev said.
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