NCE will create an expert group to discuss the tax amendments

The amendments to the Tax Code regarding the reduction of the VAT threshold, offered by the Ministry of National Economy, caused extensive discussion among experts, entrepreneurs, NGOs, deputies. In this regard, the Chairman of the Board of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" Ablay Myrzakhmetov commented on the situation.

It should be noted at last week's Internet TV channel Atameken business channel head of the Board of NCE gave a detailed explanation of this matter. Since this issue has caused quite a serious resonance in the society, the Prime Minister B. Sagintayev, given the acuteness and the importance of the current issues, on Monday called for a meeting, which was attended by all relevant state agencies, developers, NCE RK  "Atameken".

As explained Ablay Myrzakhmetov, the current Tax Code has the norm, which enters into force from 1^st of January 2017, which seriously worsens the position of entrepreneurs, against which were "Atameken" and business associations in the past year. The current rule provides a 10-fold reduction of the VAT threshold, which affect the interests of hundreds of thousands of small businesses. As it was noted by Ablay Myrzakhmetov, this provision, despite the objections of NCE, unfortunately, this provision has remained, "and now it is important to change it".

"The amendment discussed at Mazhilis is definitely better, but the risks of growth of the tax burden on small business remain. Given the approval of the Mazhilis of the amendment in the first reading, I believe that the amendment should be adopted, as it will give one more year of respite, but, most importantly, the Prime Minister has supported our proposal - this year it is necessary to prepare the new Tax Code from the standpoint of business and with participation of independent experts through open and wide discussion. The Prime Minister instructed the Ministry of National Economy together with NCE "Atameken" and experts to prepare and submit for discussion a new draft Tax Code by 1^st of May 2017. "For the first time we have have the chance to prepare the Tax Code and business forms  the agenda", - said Ablay Myrzakhmetov.

Chairman of NCE also expressed appreciation to the experts, who came with the initiative to abolish the regulations on reduction of the VAT threshold, which set the tone for the discussion.

Ablay Myrzakhmetov reported that at NCE within a week will be formed expert group, which will include all the experts who participated in the discussion of tax issues, representatives of accredited business associations at NCE. He also added that some of the members of the expert group will be included in the joint working group that will form the Ministry of National Economy and NCE.

NCE intends to open a webpage at social networks, on which each entrepreneur within six months may make suggestions and express opinion, and also see the work of the expert group of NCE.

As it was noted by Ablay Myrzakhmetov, during the discussion will be studied international practice and own experience over the years of independence. "Of course, we will take into account the competitiveness of our tax field, taking into account the fact that we are in the integration process", - said the head of the Board of NCE.

According to him, NCE together with the experts needs to carry out "field" research in the regions, to investigate the real tax burden in various segments (small, medium and large) business. "The new tax code should make it possible for domestic business to become competitive, to take into account the current specifics, where the main share is small microbusiness, especially in rural areas, single-industry towns, so it is convenient for entrepreneurs to work, and the entry to this business is understood not only in terms of registration, and tax liabilities. That is, should be clearly optimized the tax field and maximally simplified administration", - concluded Ablay Myrzakhmetov, adding that the administration should not wear a punitive function, and prevention. He cited the example of the Japanese experience as an entrepreneur, going to the tax office in the first place gets the necessary consultations, and only then they are talking about other issues related to payment, etc. "That is, we need to deploy all of the tax system so that it is friendly and easy to do business competitively and massively", - said A. Myrzakhmetov.

NCE again stressed that there is a large pool to optimize the cost of public and quasi-public agencies than to increase the tax burden on business.

At the end of the conversation Ablay Myrzakhmetov urged all experts to actively advocate the business interests in a constructive dialogue, to take part in the work of the expert group. "In a week's time we will give proposals for the establishment of such a group", - he said.

Karlygash Zhusupbekova