What will happen to inflation in Kazakhstan amid VAT decision

Tengrinews.kz – Deputy Prime Minister and Minister of National Economy Serik Zhumangarin stated that due to the increase in tax revenues, additional inflation is expected to reach up to three percent.

During a government meeting, the head of the Ministry of National Economy announced that tax revenues would grow by 4-5 trillion tenge annually.

"These funds will help reduce dependence on the National Fund, lower the level of public debt, and allocate additional resources for infrastructure development, the agro-industrial complex, manufacturing, and defense.

It is important to note that the potential inflationary effect of tax increases will be short-term and will subside within a year. Additional inflation is expected to be up to 3 percent," he said.

Earlier, the President, speaking about tax reform, instructed officials to find optimal solutions that, on one hand, would create favorable conditions and not hinder businesses, and on the other, would bring order to the tax system and ensure revenue growth for the budget.