The president supports a tax on luxury. At the same time he believes that it is impossible to increase taxes for the middle class.

Reach people of Kazakhstan should bear the social responsibility to the people and direct their wealth on the development of the country. At the XV Congress of the People’s Democratic Party “Nur Otan”, the President Nursultan Nazarbayev has expressed support for the proposal put forward by the deputies of the Majilis on introduction of the luxury tax. This is reported by a correspondent of  Kapital.kz.

“There should be more rich people, and they should use their funds for development of the country, which helped them rich this level. If the number of rich people grows, they can and have to participate in social responsibility to people”, the president of the RoK said. 

In particular, the President called for the support of the domestic small and medium-sized businesses. Performance in SMEs in the country today is only 20 %, when in other countries this figure is 60-70 %, he said.

“We need to reach 50 %. That is why we need to help business. We need to introduce indirect taxes on luxury goods, expensive cars, for all kinds of bad passions, like alcohol and cigarettes, and so on. Here a wide field of activity. We have the lowest, probably, in the world corporate taxes for companies that pay the lowest income taxes on the rich and the poor. That is, we have created a class of rich citizens and it is right. That was our goal,” Nursultan Nazarbayev said.

Earlier, the deputies of the Majilis of the faction of “Nur Otan”, made proposals to the Government regarding the increase in the tax on cars with an engine capacity greater than 4 cu. sm. The initiative was supported by the Ministry of Economy and Budget Planning. According to information of Yerbolat Dosayev, the ministry is ready to fulfill all the comments of the working group on the bill.

Deputies, in particular, proposed, for vehicles with engine capacity of 4 to 5 million cubic meters, to introduce the tax rate of 130 MCI (225 th. Tenge), for vehicles with engine volume of more than 5000 – up to 200 MCI (346 th. Tenge). It is proposed to apply the new tax rates to vehicles that are purchased from 1 January 2014, that is, previously purchased cars will be applied the old tax rate.

Members of the committee voted to submit a bill on first reading. The deputies supported a two-fold increase in the basic cost of one square meter in Almaty, Astana and regional centers of Kazakhstan previously proposed by the government. But deputies decided that it is necessary to exclude the scale-up factor and replace it with a more equitable approach, depending on the cost of housing, which will, in their view, be more justified in the taxation of expensive housing.

In the original version, a government bill proposed increasing the tax rates on personal property, land tax, tax on vehicles with an engine capacity of 3 thousand to 4 thousand cubic centimeters, the excise tax on cigarettes in 2015, excise taxes on alcoholic beverages in 2014. In this case, increase in the revenue originally proposed by the bill has already been taken into account in the forecast of revenue of the republican budget in the years 2014-2016.

Source: Kapital.kz