Capacities for the production of pesticides in Kazakhstan are loaded by only 13% due to the high cost of raw materials. In order to increase the competitiveness of domestic products, changes will be made to the tax legislation. This is reported by ElDala.kz with reference to the press service of the Ministry of Industry and Infrastructure Development.
Problems in the production of pesticides were discussed at an interdepartmental meeting in MIIR. According to the head of the Chemical Industry Department, Laura Utemuratova, there is no production of raw materials for pesticides on the territory of the Republic of Kazakhstan, it is completely import-dependent. At the same time, the share of raw material costs in the cost of pesticides is about 90%.
"The import of raw materials in 2021 amounted to 37,734 tons for a total of $104.2 million. Complete dependence on imports of domestic enterprises leads to low competitiveness, as a result of which capacity utilization currently does not exceed 13%. At the same time, domestic enterprises can produce up to 90 million liters per year, which is enough to meet the needs of agricultural producers with the main types of pesticides of domestic production by almost 100%," said Laura Utemuratova.
In this regard, MIIR initiated amendments and additions to the Code of the Republic of Kazakhstan "On Taxes and other mandatory payments to the budget". In article 399, it is proposed to supplement the list of imported goods exempt from value added tax with raw materials for the production of pesticides.
The Ministry's proposal is justified by the need to stimulate the development of one of the directions of the agrochemistry sector – the production of pesticides. Amendments to the tax Code are aimed at increasing the competitiveness of domestic producers of pesticides, expanding their assortment and import substitution, the IIR stressed.