OREANDA-NEWS. October 20, 2014. Kazakhstan plans to abolish inefficient tax concessions for 200 billion tenge. It was reported by First Vice Minister of National Economy of Kazakhstan Marat Kusainov at the "round table" on effectiveness of tax concessions in the Senate of the Kazakh Parliament.

"In the current year, the draft law on taxation was submitted to the Parliament; it provides for amendments to the Tax Code aimed at agribusiness entities support. According to the results of tax concessions audit, the bill proposes to exclude tax concessions worth more than 200 billion tenge," M. Kusainov said.

According to him, it is proposed to exclude: decrease of 70 per cent tax on land within special tax regimes for agricultural producers; exemption from taxes on property and land for strategic investment projects; benefit whilst transferring non-performing assets of the Development Bank of Kazakhstan to Kazakhstan Investment Fund; tax-exempt dividends; exemption from corporate income tax rate on capital lease; temporary privileges to a specific completion date. Abolition of these concessions is due to their low efficiency.

Vice Minister stressed that the work on building a flexible fiscal policy will continue. In general, in his opinion, use of tax incentives in Kazakhstan is justified due to relatively high level of taxation.

As M. Kusainov noted, in recent years, Kazakhstan has become more attractive to foreign investors thanks to both virtue of acceptable tax burden, and use of certain types of tax benefits.