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Kazakhstan to take measures on tax stimulation of business activities

Business Materials 23 March 2020 15:50 (UTC +04:00)

BAKU, Azerbaijan, Mar. 23

By Nargiz Sadikhova – Trend:

A complex of measures on tax stimulation of business activities and provision of prices stability will be developed in Kazakhstan, Trend reports with reference to the press office of Kazakhstan’s president.

The corresponding order has been given by Kazakhstan’s President Kassym Jomart Tokayev during a meeting of a State Commission on Emergency State held in Nur-Sultan on March 23, 2020.

“We are witnessing a 'perfect storm'. The pandemic, the battle between the oil superpowers and the record drop in stock indices are imposed on the imbalances of the global economic system accumulated in recent years. In these conditions, we must give an adequate economic response, rely on healthy, competitive entrepreneurship, help it withstand the situation and become stronger,” Tokayev said.

He noted that it’s important to timely detect economy sectors the most affected by emergency state introduction and decrease of demand, and to carry out a number of measures to support these economy sectors.

Thus, suspension of payments of main debt and interest on all loans to small and medium-sized businesses affected by the current situation is among the support measures.

“I give order to develop a set of measures to tax stimulate business activities and to ensure price stability. Thus, I consider necessary to provide SMEs with a deferral of payment of all types of taxes and other obligatory payments for a period of three months, without charging fines and penalties. The need to temporarily reduce VAT on agricultural products and food products, zeroing customs duties on critical imports should also be considered,” Tokayev said.

He added that this work should take no more than a week.

The head of state also ordered to suspend collection of rental payments on property of SMEs starting from March 20, for a period of three months.

“Local executive bodies should jointly consider the possibility of exempting commercial property from rent payments. The Ministry of Finance should increase control over implementation of contractual obligations within the framework of public procurement. All payments for the rendered services and works must be made within five days. Government agencies and quasi-state-owned companies should not require penalties and add a supplier in the register of unreliable suppliers if the failure to fulfill the contract is due to current economy situation,” said the president.

By a decision of State Commission on Emergency State under the president of Kazakhstan, quarantine regime has been introduced in Kazakhstan’s Nur-Sultan and Almaty cities at 00:00 (GMT +6) on March 19, 2020, due to coronavirus outbreak.

On March 15, 2020, Kazakhstan’s President Kassym Jomart Tokayev signed a decree introducing an emergency state in Kazakhstan due to coronavirus outbreak, which came in force from 08:00 (GMT +6) on March 16 and will last till 08:00 on April 15, 2020.

First two cases of coronavirus infection were detected in Kazakhstan among those who arrived in Almaty city from Germany on March 13, 2020. The latest data said that the overall number of coronavirus cases in Kazakhstan is 62 people.

The outbreak in the Chinese city of Wuhan - which is an international transport hub - began at a fish market in late December 2019.

As of today, over 349,000 people have been confirmed as infected. The number of people killed by the disease has surpassed 15,000. Meanwhile, over 100,000 people have reportedly recovered.

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