Experts have published the difference between taxation system in Kazakhstan and in Europe, the correspondent of Tengrinews.kz reports.
According to information presented by Anton Soroko, the analyst’ of FINAM, an investment holding company, in general, Kazakhstan’s tax system is similar to the Russian one, which is much milder than in most European countries. “Basically, this effect is achieved at the expense of a flat rate on the key types of taxes (VAT, personal income tax and corporate income tax), whereas in Europe, most rates are progressive, which, according to economists’ information, would reduce the inequality of the population,» the analyst said.
The interviewee considered the tax on personal income (PIT) in different countries. For example, in Russia the rate is 13 percent, and it is the same for all citizens. In Belarus, this rate is 12 percent, in Kazakhstan is ten percent. While in Germany the rate is floating. “Its minimum value is 19 percent, and the maximum is 53 percent. Thus, wealthy Germans are forced to pay half of its revenue to the state. Thus, there are developed systems of benefits and various discounts. On the other hand, high taxes turn into a wide range of social programs, so it cannot be argued that the taxpayer gives them free (eventually)”, the speaker said.
The analyst believes that Kazakhstan in the future will also move to a progressive scale of personal income tax, as an approach to taxation involves the reduction of social stratification. “The main thing is “not to overreact”, when the various unemployment benefits are greater than if a citizen goes to work in according to his/her qualification. This could form the trend for the increase in unemployment,” he explained.
In turn, the director of the Center for Macroeconomic Research, Olzhas Khudaibergenov believes that in general tax instruments in Europe, Kazakhstan and other CIS countries are similar. “The difference is mainly in the rates. In foreign countries, the tax burden is 2-3 times higher than in Kazakhstan, which allows them to hold expenses of the budget of $ 40-60 per cent to GDP, whereas in Kazakhstan, the figure is 20 percent,” the economist said.
As Zhannoor Ashigali, a senior analyst at the Agency for Investment Profitability (AIPS) commented, such European countries with high social obligations, such as Sweden, Denmark, the Netherlands and Belgium with the rates calculate PIT with the rate of more than 50 percent. “The rate of 10 percent existing in Kazakhstan is much lower than European counterparts and it is normal for a developing country,” the analyst said.
Similar to other types of taxes, the evolving nature of the economy leads to taxation at a relatively low level of rates. CIT for most categories of corporate taxation in Kazakhstan is 20 per cent; VAT rate is 12 percent – on taxable turnover and taxable import and zero percent – for the sale of goods for export. In general, the rates in Kazakhstan meet the requirements of long-term development of the economy, that partly explains the excess growth of Kazakhstan’s economy over the growth of the Russian economy in a more developed economic structure of our neighbors,” Ashigali said.
According to the information of the analyst, it is also important that Kazakhstan is mainly uses the flat rate of taxation, which is also a positive thing, since exactly this kind of rate creates the greatest opportunity for economic development, and does not allow to manipulate taxable entities for the transition to the other categories of taxation schemes in order to minimize tax payments. “Otherwise, the high level of tax rates for businesses and individuals with higher incomes leads to transfer of capital in other economies, or to evading the payment of taxes,” the source reports.
Author: Azhar Ashirova
Source: http:/www.Tengrinews.kz
