Progressive personal income tax rates to be discussed with the public, Kazakh Ministry of National Economy says
The introduction of progressive personal income tax rates and its amount will be discussed in public, said Kazakh Deputy Minister of National Economy Madi Takiyev at an online briefing in Central Communications Service held after the final session of the Government’s emergency response commission chaired by Kazakh President Kassym-Jomart Tokayev yesterday.
“To consider this issue, the ministry creates a working group which will include members of the Parliament, representatives of the Atameken National Chamber of Entrepreneurs, industrial ministries and well-known public figures. We have not determined income and rate scales yet. They will be discussed with the public,” said Takiyev.
He added that the introduction of the taxation implies not only a direct increase, but also a regression.
“Employees with lower income will pay a lower percentage of that income in tax. This will boost transparency of the salary process,” commented the Deputy Minister.
He said that income tax is one of the most important types of tax, especially in the regional budget, where it amounts to 34 percent, while in the national budget – nearly 9 percent.
“Earlier, Kazakhstan applied the progressive taxation until 2007. Then the country has started applying flat taxation. 29 countries are applying the flat taxation, while the rest are applying the progressive, including countries of the Organization for Economic Co-operation and Development. The point of the progressive taxation is that higher paid employees will make greater contribution to the development of the country,” explained Madi Takiyev.