"Entrepreneurs will pass on costs to the public," says expert on the increase in VAT.

Experts are actively discussing an extended government meeting involving the president. In particular, specialists have commented on the proposal to increase VAT rates, according to the KTK television channel's website.

https://www.nur.kz/society/2216025-predprinimateli-budut-perekladyvat-rashody-na-naselenie-ekspert-o-povyshenii-nds/2025-01-29 08:31:41

According to economists, the effects of the VAT increase will be mitigated by other measures promised by the government.

"Manufacturers and entrepreneurs, seeing such a rate, will pass the costs onto the population. However, the government has also planned to reduce the size of the wage fund. The unification of tax reform, budget administration, and the transition to electronic formats will help to some extent avoid gray schemes."

"The increase in VAT and the reduction of the wage fund will help to offset the impact," believes Gali Dinmukhammed, director of the Applied Research Center at the Institute of Applied Ethnopolitical Studies.

Currently, as the TV channel explains, businesses pay 40% of their employees' salaries into the wage fund. The government promises to reduce this burden by 10% and compensate for this decrease with budget payments.

Thus, VAT expenses will rise, while costs for social taxes and pension contributions will decrease. In other words, experts believe there is no reason for a sharp price increase on goods.

Overall, the economic reform, which the president has instructed to be thoroughly developed and discussed, is expected to positively impact the lives of each individual Kazakhstani, according to political scientists.

"This is all a logical continuation of the major reforms currently underway. Primarily, they are aimed at improving the quality of life for the population, so that the results of economic growth benefit all segments of society equally," stated Anna Alshanskaya, head of the Economic Policy Analysis Department at the KISI under the President of Kazakhstan.

Source: KTK

Recall that yesterday, at an expanded government meeting, Kazakhstan's Prime Minister Olzhas Bektenov proposed to increase VAT while simultaneously reducing social taxes and pension contributions for employers.

National Economy Minister Jumangarin, discussing plans to increase VAT in Kazakhstan, stated that the new rate has not yet been determined but will be announced in the coming month.

After the meeting, Jumangarin reported plans to index the salaries of budget employees in the event of a VAT increase.