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Legislation liberalization will help Kazakh business

29 april 2011, 10:51
0
Photo courtesy of mirsovetov2.ru
Photo courtesy of mirsovetov2.ru
Liberalization of business-related legislations will help prompt business development in Kazakhstan, Tengrinews.kz reports citing president of Almaty Entrepreneurs Association Viktor Yambayev.

Viktor Yambayev gave his opinion on reforms in Kazakhstan and positively assessed humanization of the penal code.

“It is good that now there is a political understanding and political will. There is an understanding that people are just running their legal businesses, they are not doing anything illegal, they are not selling drugs, they are not poisoning other people, they are just doing their legal businesses. But what they want is to keep their businesses running and save them from falling apart. A begging bowl is sometimes worse than a jail. When a person is ordered to pay enormous fines that cause him to go bankrupt he gets overly stressed! No less than when he gets jailed and all his life plans tumble down broken,” said Yambayev.

He also spoke about further liberalization of business-related laws. He said that it is necessary to clearly define the meaning of economic crime term in the laws to legally distinguish misuse of public funds from understatement of income by entrepreneurs trying to pay fewer taxes.

He said that up to one third of businessmen can now be drawn under the fiscal pressure for pseudo-entrepreneurship. “They would get gigantic fines. Administrative and legislative reforms that President Nazarbayev spoke about should be implemented without delays as well as a full-scale audit of the Tax Code. We need a radical reform so that evading taxes will no longer be more profitable than paying them,” said Yambayev.

As per the Association’s President, it is important that the reform is not delayed and that a number of clauses is stricken out of laws. A major attention should be given to revision of pseudo-entrepreneurship clauses. Kazakhstan turnover tax reaches up to 12 percent, whereas in the United States it is only 5 percent. Kazakhstan entrepreneurs would agree to pay 7 percent turnover tax, Yambayev said.

"By doing so we would deal a blow to the corruption and bring down the corruption vertical. Secondly, the shade cash-out-companies used to evade taxes will fade away on their own and the financial police won't have to chase them anymore. Besides, there will be no need to work hard to improve the anti-pseudo-entrepreneurship law because the business will simply feel no need for hiding and will be operating legally. Then the financial police and fiscal authorities will be able to focus their efforts on prevention of embezzlement of budget finds and tackling corruption," he said.

All small businesses have to be legalized, Yambayev said.

"In my view the government can achieve it if it relies on competent opinions of people and cooperate with social organizations that are aware of the problems and challenges the entrepreneurs are facing,” said the businessman.

A budget thief should be jailed but not the private entrepreneur who feeds his family and the families of his employees, said Yambayev.

Viktor Yambayev also spoke about taxes in Kazakhstan. Under the current field-specific legislations it is impossible to produce anything. Entrepreneurs have to either divide their companies into several companies or simply hide their profits, he said.

"It is necessary to humanize the penal code along with implementing the tax reform and administrative reform, as well as to review functions of regulatory authorities and the number of such authorities. The administrative reform should optimize state management structure to make distribution of budget funds more effective,” concluded Viktor Yambayev.


By Maksim Popov

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