Deputies of the Senate Committee on Finance and Budget proposed to study problematic issues in the field of agriculture at the legislative level and revise the law on taxation. This was reported by ElDala.kz with reference to the press service of the Senate.
The senators stressed that today it is extremely important to study this industry and provide comprehensive legislative support to local producers, as well as eliminate unequal competition with importers.
“We came to the conclusion that, within the framework of the legislation, it is necessary to study current problems and issues in the field of crop production, as well as to revise the law on taxation of this industry. In addition, there is a specific instruction from the head of state, Kassym-Jomart Tokayev, to support domestic producers,” Senator Gumar Dyusembayev said during a visit to an agricultural enterprise for the production of pesticides and herbicides in Stepnogorsk, Akmola region.
The deputies also noted that with due support from the state, domestic producers with existing production capacities are able to increase production and provide the domestic market with pesticides by 90% over the next 12 months. Such a breakthrough will increase the employment of the population, strengthen the scientific and practical work of domestic scientists, accelerate the development of new pesticide preparations, and also increase tax revenue.
Earlier, Majilis deputies proposed to reduce the VAT rate for producers of socially important goods, or replace it with a turnover or sales tax. In the Majilis, during the discussion of amendments to the Tax Code, deputy Azat Peruashev said that the current tax legislation stimulates raw material exports, and not the production of goods in the country.
In general, he emphasized that, by nature, VAT is used to curb overproduction, but in Kazakhstan there is a crisis of underproduction. For resource-based economies, this tax is an incentive to export raw materials, and it is more profitable to import finished goods.
According to Ak Zhol's proposal, if the government is not ready to reduce VAT rates for social goods, then consideration should be given to replacing VAT with a turnover or sales tax. Moreover, such a tax should be 3-4 times lower than VAT. Then conditions will be created under which it will become more profitable to produce products than to import and resell them.