Kazakhstan's President Kassym-Jomart Tokayev has proposed a revision of the tax burden on the country's banking sector. Tokayev highlighted that Kazakh banks are among the most profitable in resource-rich countries worldwide. He emphasized that banks should pay taxes aligned with the dividends distributed to their shareholders. The President also stressed the need for new banking legislation to foster economic activity and support the growth of the financial technology sector.
Following the unrest in 2022, which President Tokayev described as an attempted coup, Kazakhstan increased its budget expenditures. In response to these developments, Tokayev has been pushing for higher taxes on banks and has initiated efforts to reclaim assets that are believed to have been acquired illegally. Despite these efforts, Tokayev acknowledged the previous and current administrations' shortcomings in effectively managing the revenue aspect of the national budget. He cautioned that this issue should not become a systemic obstacle to the country's development.
To date, Kazakhstan has not fully implemented the proposed higher taxes on its banking sector, with only a limited number of prominent business figures having returned significant assets to the state. Notably, Halyk Bank, the largest lender in Kazakhstan, remains under the control of the daughter and son-in-law of former President Nursultan Nazarbayev. Tokayev also announced a delay in the approval of a new tax code until the following year, emphasizing the importance of successful fiscal reforms, including enhancing the effectiveness of tax incentives.
In addition to tax reforms, Tokayev urged the country's business elite to increase their investments within Kazakhstan. He proposed an amnesty for business leaders willing to direct their capital toward the domestic economy, suggesting that this initiative should be formalized through legislation. Tokayev further indicated that individuals with assets acquired through questionable means could negotiate with the government without admitting any wrongdoing, provided they contribute financially to the national budget.
Moreover, President Tokayev underscored the responsibility of businesses to make substantial investments in the construction of schools, hospitals, and other social infrastructure projects as part of their contribution to Kazakhstan's overall development.
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