Supporting the country's economy

On Wednesday, July 29, at the Central Communications Service, Minister of National Economy Ruslan Dalenov held an online briefing on the country's economy supporting.

The impact of global negative trends affects the economy of Kazakhstan since the beginning of this year.  Kazakhstan, like all other countries in the world, is experiencing a decline in business activity against the backdrop of a set of negative consequences from the coronavirus.  The service sector suffered the most, with a decline of 5.6% over 6 months.

Business support measures were taken in a pandemic, reported by Ruslan Dalenov:

Until June 1, 2020, a deferred payment of all taxes and social payments has been introduced for SMEs.  In the most vulnerable economic sectors, the property tax rate has been updated by the end of the year.

For agricultural producers, the land tax rate has been reduced to 0%.

In the field of livestock breeding, there is an opportunity to pay VAT by offsetting imported goods.

In addition, the VAT of socially significant foods has been reduced in general (from 12 to 8%) for the period until October 1 of this year.

Significant support was provided in the 29 most affected economic sectors .

“Zero rates have been set for taxes and social payments from the wage funduntil October 1” - Dalenov said.  It is meant individual income tax, mandatory pension contributions, social tax, and mandatory medical insurance.

Additional business support measures have been also developed and adopted on July 18, 2020, by the decision of the state commission to restore economic growth.  These measures provide for issues of Kazakhstani content in procurement, leasing of agricultural machinery, the possibility of refinancing loans, promoting goods for export, simplifying procedures in general.

Speaking about the economic development medium-term plans, the Minister reported on the strategies undertaken in the government:

“In pursuance of the instructions of the Head of State given at the enlarged meeting of the Government on July 10, the Government, together with the National Bank and the Agency for Regulation and Development of the Financial Market adopted a plan of joint actions to support the population's economy in case of socio-economic situation worsening. The joint action plan includes activities with specific deadlines and forms of completion in 4 directions. These are support for employment of the population incomes, urgent measures to support SMEs, active import substitution, macroeconomic stability. "

At the end of the briefing Ruslan Dalenov noted that the new economic reality requires radical changes in economic policy.  In this regard, "in pursuance of the instructions of the Head of State, a new version of the strategic plan will be formed, which will determine the main guidelines for the country's new economic course for the medium term."

According to his report, the main task of the measures taken by the ministry will be the formation of the new economic structure based on increasing its self-sufficiency.