ASTANA, KAZAKHSTAN, November 11. The International Monetary Fund (IMF) supported the increase in Kazakhstan’s Value Added Tax (VAT) rate from 12 percent to 16 percent, noting that this will improve the competitiveness of domestic producers, Trend reports.
The remark was made during a meeting between the Minister of National Economy of Kazakhstan, Alibek Kuantyrov, and the IMF mission, headed by Nicolas Blanchet.
The participants engaged in a comprehensive discussion on several significant fiscal matters, which included deliberations on the potential increase in the VAT rate.
Additionally, Nicolas Blanchet noted that the International Monetary Fund is ready to provide technical support for the ongoing reforms.
Following the results of the IMF mission, a final statement will be prepared. The mission will end on November 21.
Meanwhile, the VAT rate in Kazakhstan currently stands at 12 percent. Compared to other countries, such as Russia and Belarus, where the rate is 20 percent, and European countries, where it can reach 27 percent, the VAT rate in Kazakhstan remains relatively low.
The proposed rate increase will lead to additional budget revenues and will also increase the competitiveness of domestic goods compared to goods imported from neighboring countries. This rate is expected to apply in 2025.