ASTANA, Kazakhstan, September 2. It is necessary to create a conducive environment to boost business activity by increasing private investment, Kazakhstan’s President Kassym-Jomart Tokayev said in his annual address to the joint session of Parliament, TurkicWorld reports.
Tokayev has called for a comprehensive reform of Kazakhstan’s tax system to foster economic growth and attract private investment.
"It is evident that state finances alone are insufficient for dynamic economic growth. A stable tax policy is crucial for fostering quality development and responsible business practices," Tokayev stated.
He highlighted that the new Tax Code is designed to establish a fundamentally new approach to tax administration based on trust between taxpayers and the government. The Code aims to simplify tax regulations and make them clear to all economically active citizens, thereby reducing interpretive ambiguities.
Tokayev also stressed the importance of optimizing tax regimes without undermining favorable conditions for entrepreneurs. He cited the example of a retail tax, which has encouraged businesses to formalize operations and reduced fragmentation. However, he noted that this regime should apply primarily to businesses dealing directly with consumers.
The president underscored that maximizing the potential of consumer services and trade could provide a swift boost to economic growth, increase tax revenues, and enhance employment opportunities.
For the fiscal reform to succeed, Tokayev emphasized the need for comprehensive digitalization of tax administration.
"To mitigate corruption risks and ensure transparency, we must accelerate the transition of tax processes to an electronic format. It is essential to adapt tax policy to changing fiscal conditions, including a review of tax rates," he added.
