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Kazakhstan, IMF strategize doubled GDP by 2029 via investment stimulation

Kazakhstan Materials 11 November 2023 12:06 (UTC +04:00)
Madina Usmanova
Madina Usmanova
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ASTANA, KAZAKHSTAN, November 11. Ministry of National Economy of Kazakhstan and International Monetary Fund (IMF) have discussed prospects of Kazakhstan’s economic development and drafts of the reforms of new Budget and Tax Codes, Trend reports.

The news followed a meeting between the Minister of National Economy of Kazakhstan, Alibek Kuantyrov, and the IMF mission, headed by Nicolas Blanchet.

During the meeting, the participants engaged in a comprehensive discussion on several significant fiscal matters, which included deliberations on the potential increase in the Value Added Tax (VAT) rate, introducing a differentiated Corporate Profit Tax (CPN) structure for high-income industries, and implementing a progressive scale for the personal income tax (PIT) to promote fair taxation.

According to Kuantyrov, 6 percent of economic growth and a doubling of GDP by 2029 will be achieved primarily by stimulating investment in fixed assets. One of the sources of investment will be the new tariff policy.

Some other issues included addressing the taxation of luxury goods and integrating International Monetary Fund (IMF) recommendations into the forthcoming Budget Code, with a focus on enhancing the effectiveness of budgetary regulations and rules.

In 2022, the real growth of the Kazakh economy was 3.2 percent. The country attracted $28 billion of foreign direct investment, achieving 18 percent growth.

The real volume of investment in fixed capital increased by 8 percent. Foreign trade turnover increased by 32 percent and amounted to $134 billion.

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