The Majilis deputies adopted the new Tax Code and accompanying amendments on taxation issues in the second reading. The VAT rate in the document is set at 16% (initially, an increase to 20% was proposed). In addition, a significant increase in the tax is expected for inefficient use of agricultural land.
"In case of inefficient use of agricultural land, the rates are increased to 100 times the amount," the Majilis press service reported.
The Chamber noted that as a result of the joint work of the deputy corps and the Cabinet of Ministers on the Tax Code, a number of decisions were reached, including on VAT reform. The 20% rate initially proposed by the government has been reduced to 16%. The threshold for mandatory VAT registration has been increased from 15 million to 40 million tenge.
An exemption from VAT is envisaged for socially significant food products. In order to support agricultural producers, the amount of VAT additionally credited has been increased from 70% to 80%.
As part of the simplified declaration reform, a prohibitive list of types of activity has been introduced instead of a permissive list. The application of a special tax regime for transactions between businesses has been expanded.
“In general, the reform provides for a number of key changes aimed at simplifying the tax system: reducing tax reporting by 30%, reducing the number of taxes by 20%, optimizing tax benefits, introducing differentiated rates, stimulating investment activity, increasing the burden on luxury goods and solving a number of other pressing issues,” the Majilis reported.