Tokayev Endorses Changes to Tax Legislation
The Kazakhstani government has made significant adjustments to the country's Tax Code, as President Kassym-Jomart Tokayev signed the law on amendments and additions to the current Tax Code adopted in 2017 on July 15, 2025. These changes, which will soon come into force, aim to bolster government revenue and provide support to key sectors such as agriculture and healthcare.
One of the most notable changes is the increase in the value-added tax (VAT) rate from the current 12% to 16%. This significant rise is expected to boost government revenue. However, certain items, including guaranteed medical care, health insurance, treatments for orphan diseases, socially significant goods, and domestic books, will remain exempt from VAT to protect vulnerable groups and essential services.
In the healthcare and social sectors, new VAT reductions are introduced. Medicines and medical services will benefit from a reduced VAT rate of 5% starting in 2026, which will increase to 10% from 2027. This move is intended to make healthcare more affordable and accessible for the general public.
Additionally, the amount of VAT offset for agricultural producers will be increased to 80%, providing greater support to the agriculture sector. This increase in support is expected to help boost agricultural production and ensure food security in Kazakhstan.
Another key change is the increase in the mandatory VAT registration threshold from 15 million tenge to 40 million tenge. This means only businesses with sales above this higher threshold will be required to register for VAT, potentially reducing the administrative burden on smaller businesses.
The Astana Times has previously written in detail about the proposed amendments to the Tax Code and their impact. It is important for businesses and individuals to stay informed about these changes to ensure compliance and make informed decisions.
In conclusion, the amendments to the Tax Code in Kazakhstan are designed to support key sectors, increase government revenue, and reduce administrative burdens on smaller businesses. These changes were signed into law by President Tokayev and will soon come into force.
The increase in the value-added tax (VAT) rate to 16% will not only boost the government's revenue but also impact the business sector, as certain items remain exempt from VAT to protect vulnerable groups and essential services. Starting in 2026, medicines and medical services will benefit from a reduced VAT rate of 5%, aiming to make healthcare more affordable and accessible for the general public, further intertwining finance, business, and politics with general news.
As the mandatory VAT registration threshold rises from 15 million tenge to 40 million tenge, smaller businesses face potential relief from administrative burdens, signifying a political decision with economic implications, linking the realm of business and finance to the broader context of politics and general news.
