The Government session chaired by the Prime Minister of Kazakhstan Olzhas Bektenov considered the issues of improving tax and customs administration and digitalisation of processes.
As part of the implementation of the instruction of the Head of State Kassym-Jomart Tokayev in March this year in Kazakhstan were revised procedures for VAT refunds to domestic exporters. Given the change in approaches, the share of confirmations will now be increased, which will be a tangible support for Kazakhstan's commodity producers. This was reported at the Government session by Finance Minister Madi Takiev. According to him, now at the stage of development of the analytical system, which will ensure the efficiency of this procedure. In total, over the past two months, exporters have returned to exporters about half of the total amount of debt.
"In 2023, VAT was returned to businesses, with about 600 billion tenge were underpaid by business entities. And this is about 485 companies exporting goods. Thus, working capital was withdrawn from businesses. This is a violation of the rights of entrepreneurs. In this regard, the Ministry of Finance should return the confirmed amounts of VAT, as well as take measures to simplify the refund procedure. At the same time, I instruct to work out mechanisms, when the amounts of VAT refunded are reinvested by business in modernisation and expansion of activities," Prime Minister said.
About 4 trillion additional taxes and customs payments have been received in the republican budget for 5 years due to the measures of administration. The plan for this year includes 1.6 trillion tenge of revenues, which is 173% more than last year's level. To achieve such an ambitious task, the Government is taking a number of measures.
In particular, the criteria of the Risk Management System for assigning tax audits have been revised: now they are carried out using a point selection method. If their number decreases by 16 per cent compared to 2022, tax collection is doubled.
On the instructions of the Head of State, an independent IT audit of all information systems of the State Revenue Committee has been launched in the republic. Based on its results, a new information architecture will be formed.
Olzhas Bektenov instructed to complete its creation, as well as the integration of tax and customs information systems by the end of this year.
Head of the Government dwelt separately on the draft of the new Tax Code being developed, emphasising that it is necessary to take into account the complaints of Kazakhstan citizens received last year and to shift the emphasis on the service model of administration.
"The requirements for the new Tax Code are very strict, the approaches presented earlier were deservedly criticised. There are high expectations from society and business from this document. The main thing is that it should be transparent, easy to understand and balanced. At the same time, the development of the Code has been delayed. In this regard, it is necessary to complete this work promptly," Olzhas Bektenov emphasised.
Kazakhstan has introduced an electronic queuing system at all checkpoints on the external border and seven points on the internal border (with EAEU member countries). Today it is the only one in Central Asia, which provides transparency and speed of the transport process, minimising the congestion of vehicles.
Prime Minister stressed the need to accelerate the modernisation and equipping of checkpoints. It is also necessary to fully digitise all processes of tax and customs administration, eliminating direct contact of employees of state revenue authorities with taxpayers and participants of foreign economic activity.
In addition, Prime Minister instructed to introduce a mechanism of mandatory monitoring of the application of tax benefits, establishing counter obligations of business. Benefits should be provided economically justified, based on financial calculations and clear timelines for achieving results.