Skip to Content

A set of measures to deregulate business to be prepared by July 1

by January 31, 2017 General

In his Message to the people the President of Kazakhstan Nursultan Nazarbayev noted the need to radically improve and enhance the business environment. One of the strategic goals is to ensure that the contribution of small and medium-sized businesses in GDP of at least 50% by 2050. The Head of State noted that the existing regulatory burden on business is incompatible with the task of creating a new model of growth.

“One of the priorities of the Message was a massive deregulation of the economy. Most of all small and medium businesses will receive dividends and benefit from it. Big business always has a staff of legal, tax advisors and other consultants, who help him to maneuver among a large number of regulatory norms,” T. Suleymenov said.

The Minister confirmed that the financial sector of Kazakhstan is in a rather difficult situation today. A large amount of credit to the economy is supported by the state through interest rate subsidies on the various programs, as well as through the development of institutions.

“Direct financing of the economy without the active participation of the state is not enough. Loan is a complicated process. And this is despite the fact that the rate decreased from 17 to 12% since last year. It is one of the key tasks for today. First of all, it is the prerogative of the National Bank,” T. Suleymenov said.

The Minister noted that the task is to revise budget priorities, transfer costs from inefficient programs for new projects. In this regard, the Ministry of National Economy will prepare amendments to the Budget Code.

In addition, the Government will to reduce business costs related to excessive regulation and services of natural monopolies. Moreover, if the first type of cost savings is deregulation, another way is a job for the services of natural monopolies, which are large enough component cost. Here, the Government plans to build most of the work within the framework of the new law on natural monopolies.

T. Suleymenov concluded that the Government will adopt the draft law by May of this year; a lot of new features, including the further differentiation of tariffs between natural and legal persons will be introduced there; it will allow to realize the great potential to reduce costs.

Source: The Prime Minister of Kazakhstan