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Government considers measures to promote competition in the country

by January 30, 2018 Legal

During the Government meeting chaired by Prime Minister Bakytzhan Sagintayev, Minister of National Economy Timur Suleimenov elaborated on the development of competition in the country.

Timur Suleimenov notes that in 2017, 108 laws and 972 bylaws were audited to identify regulations that hinder competition. 144 regulations that prevented competition were identified in the course of audit of the above-mentioned legislative acts.

The most drastic measures to reduce business costs were aimed at deregulating the business; eliminating a number of paid public services, services of monopolies and quasi-public enterprises or reducing their costs; revising rates of individual taxes and mandatory payments to the budget (fees); abolishing excessive requirements imposed on business entities when exercising state control and supervision, or when they receive permits; optimizing information tools; regulating the issuance of standard specifications for connection to engineering networks of natural monopoly entities.

Amendments were made to relevant legislative acts, which were reflected in the draft law On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Improving Business Regulation. At present, this bill is considered in the Majilis of the Parliament.

In order to consolidate the principles of the Yellow Pages Rule, the Comprehensive Privatization Plan for 2016-2020 was approved, which originally included 734 facilities subject to privatization. In 2016-2017, in fact, 367 facilities (amounting to 164 billion tenge) were placed in a competitive environment out of the 902 facilities of the Comprehensive Privatization Plan.

In November 2017, as part of updating the List of Activities, the Ministry sent proposals to the Government on the elimination of 65 types of activities following the analysis of commodity markets. Further measures to reduce the state’s participation in entrepreneurial activities will be taken in the future within the framework of implementing the Address of the Head of State to the people of Kazakhstan of January 10, 2018, New Development Opportunities in the Conditions of the Fourth Industrial Revolution.

At present, the Ministry has established a working group to determine the list of state institutions and quasi-public entities to be placed into a competitive environment or liquidated, and to be consolidated. Information on the results of the work of the group will be submitted to the Government in three stages: in April, May and June of 2018, � Timur Suleimenov said.

With regards to competition protection, the number of completed investigations in 2017 was 212, of which 187 investigations identified violations in the field of competition protection. In total, in 2017, fines were imposed for the amount of 2.01 billion tenge, of which 594 million tenge were recovered. At present, 81 investigations of violations of the law in the field of competition protection are being conducted, in particular, in the primary and secondary wholesale and retail coal markets; in the market of retail fuel sales.

In 2016, the Kazakhstan antimonopoly authority was admitted as a participant in the OECD Competition Committee. A visit of OECD experts is scheduled for 2018, in order to analyze the practical application of changes in the antimonopoly legislation of the Republic of Kazakhstan introduced in 2015-2016. A large-scale review of the competition law and policy is scheduled by the OECD for 2019.

Chairman of the Board of Atameken A. Myrzakhmetov also shared his opinion on the discussed issue.

Deputy Prime Minister E. Dossaev was instructed to supervise the execution of the instructions of the Head of State on competition development.

Source: Government of the Republic of Kazakhstan