The Association of Legal Entities “Association of Producers and Importers of Alcoholic and Nicotine-Containing Products” has submitted proposals to the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan aimed at improving the methodology for calculating the Tax Burden Coefficient (TBC).
In its appeal, the Association emphasized the need for a more detailed industry-specific approach to calculating the TBC. In particular, it noted that the use of aggregated NCEA codes to compare enterprises from different sectors may distort analytical results and lead to an inaccurate assessment of the tax burden borne by individual taxpayers.
The Association proposed expanding the level of detail of NCEA codes by industry and product categories, as well as considering the calculation of the TBC at the level of 5-digit NCEA codes, which would improve the accuracy and fairness of tax administration.
Following the review of the appeal, the State Revenue Committee informed the Association that its proposals had been accepted for consideration. The relevant initiatives will be studied as part of further improvements to the approaches used in calculating the Tax Burden Coefficient and applying the risk management system.
The Association will continue its cooperation with government authorities on issues related to creating fair and transparent conditions for doing business in the Republic of Kazakhstan.
Work is also ongoing to include NCEA 11.01 in the preferential financing programs of Baiterek National Managing Holding
The Association continues its systematic efforts to expand state support measures for domestic producers by including economic activity code NCEA 11.01 “Distillation, Rectification and Blending of Spirits” in the list of activities eligible to participate in lending and financial support programs implemented through the structures of JSC “Baiterek National Managing Holding”.
For this purpose, the Association has sent official appeals to the relevant government authorities, including the Ministry of National Economy, the Ministry of Industry and Construction, the Ministry of Finance, the Ministry of Agriculture, the Atameken National Chamber of Entrepreneurs, as well as JSC “Baiterek National Managing Holding” and its subsidiaries.
The appeals emphasize that enterprises operating in the industry make significant investments in production modernization, create new jobs, develop export potential, and annually provide substantial tax revenues to the state budget. At the same time, the current lists of priority economic activities do not allow alcoholic beverage producers to participate in a number of preferential lending and financing programs.
At present, this issue is undergoing interagency review.
The Association maintains constant interaction with government authorities and interested organizations and expects that the decisions to be adopted will contribute to the further development of domestic production, attraction of investments, enhancement of enterprise competitiveness, and preservation of jobs.
The Association will additionally inform industry participants about the progress of the initiative and the results of the work carried out.
