The level of tax burden in our country is not high, despite common misconceptions. This statement can be seen in comparison with neighboring countries. According to the results of the "Paying taxes 2019" rating, conducted annually by PWC in conjunction with World Bank Group for the past 14 years, Kazakhstan has one of the lowest levels of total tax burden in the region of Central Asia and Eastern Europe. The level of taxation in our country is only 29.4%, which is almost 11% lower than the global average, as well as the level of the OECD. For a more visual representation, our partners in the EEU, Russia and Belarus have values of 43 and 67%, respectively. Moreover, in terms of competitiveness, Kazakhstan ranks 41st in the WEF GCI in terms of the negative impact of taxes on competition, while our main partner and competitor in the region ranks only 73rd.

If we compare the standard tax rates for entrepreneurs between Kazakhstan and Russia, the following picture emerges. CIT expenses are equal to 20%, while the VAT rate in Kazakhstan is 12% compared to 18% in Russia. For each employee, domestic organizations allocate approximately 14.5% of their income to social contributions, while in Russia they make up 8%. However, it is worth noting the fact that the official payer of mandatory pension contributions in Russia (22%) is the employer, and when added up, social contributions are already impressive 30%. Even if we assume that the OPC burdened the employer in Kazakhstan, the tax burden would still be lower than in Russia.

The only visible problem with taxation is its many types. A large number of all kinds of special, simplified and preferential regimes overburden the system, and a significant part of them are ineffective and incomprehensible to the majority of the population, so the new tax code with an impressive number of additions and amendments is adopted from year to year. All these complications are the consequences of the adoption of the Tax Code of 1995, which was designed to create a tax system for a market economy, but did not take into account the fact that Kazakhstan was not a developed country that could adequately take into account all the innovations.

Despite this, the tax burden in our country is at a more than acceptable level. A Single Aggregate Payment, despite its ambiguity, does not carry a high level of encumbrance (1/0.5 MCI), as well as a large income for the state, but allows to build a picture of the real number of people involved in the shadow economy. Moreover, according to the October Address of the President, this year there will be an Amnesty for entrepreneurs, which will exempt them from paying fines and penalties if the tax debt is fully paid. Thus, the government uses soft stimulus levers, for comparison, in Russia from this year the VAT level is raised to 20%, as well as the retirement age of citizens.