Effective taxation mechanisms are needed

Tax is the most valuable revenue that provides the revenue part of the state budget. Therefore, its timely accumulation weakens the potential of society. After all, this is our salary, pensions and various social benefits. It is better for society to understand this. True, we have some types of taxes, especially those for entrepreneurs, are expensive.

After the tax becomes expensive, many evade paying it, trying to conduct "double billing". Thus, a "shadow economy" is formed. Therefore, it is better to be very careful with the "more delicate" tax policy. Head of state Kassym-Jomart Tokayev in his current address to the people of Kazakhstan "fair Kazakhstan: law and order, economic growth, public optimism" paid special attention to tax policy and proposed to postpone the adoption of the new tax code. Today, we asked a few questions to the expert of the Higher School of Economics and business of kaznu, candidate of Economic Sciences Aizhan Asilova about the issues related to tax policy in the address.

– How, in your opinion, can the country's tax policy be improved?

– In his address, the head of state stressed the need to revise the current tax system, especially to develop fair and effective taxation mechanisms. In fact, the president said: "in the case of tax administration, it is necessary to abandon the punitive approach. I believe that it is possible to raise the upper limit of tax arrears, which is collected by sending a notification, without applying coercive measures. And if tax arrears exceed this limit, the limit should be set only within the framework of the amount of debt. That is, the debtor's bank account is not completely blocked. I instruct the government and Parliament to conduct a comprehensive discussion of the draft new tax code. It is necessary to make the right decision, even if it is difficult. It is impossible to allow haste here. I believe that for the high-quality development of the new tax code, the deadline for its adoption can be postponed to the next year".

Even before the address, the president expressed dissatisfaction with the tax code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI "on taxes and other mandatory payments to the budget". In this regard, it is planned to expand the tax base, increase the tax burden of high-income industries in accordance with international standards, increase value added tax, analyze tax benefits, as well as change the tax code, ways to simplify the payment of taxes, tax collection for both taxpayers and the tax collection body, and other shortcomings in taxation together with economists. Therefore, the head of state himself is responsible for the development of tax policy in the country in the right direction. And it is the direct responsibility of industry leaders and specialists to repair and supplement its shortcomings. If the government conducts the tax service with a "soft" policy so that the citizens of the country do not evade it, it seems to me that a conscious person will not shy away from paying it. Because all social benefits are made up of taxes, right? This should be consciously understood by every citizen of the country.

- The address also raised new issues related to banks...

- Yes, in addition to the tax code, the head of the country said that it is necessary to amend the law on banks. It is no exaggeration to say that the most successful among financial institutions are second-tier banks, which make the most profit. According to the National Bank of the Republic of Kazakhstan, this year the second-tier banks of the country earned 1 trillion 38 billion tenge. Banks are mainly engaged in lending to individuals, that is, consumer loans. It goes without saying that a significant part of the income is due to a consumer loan with a high percentage. In general, banks are subject to requirements for lending to the real sector, preferential financing of small and medium-sized businesses. If banks dealt with these issues, they would have a positive impact on business activity in the country, stability and progressive growth of the economy. In this regard, it is necessary to consider ways to encourage banks to invest more money in the economy.

Dividends as income distributed among shareholders of banks are taxed at a rate of 10 percent of the taxpayer's income. The dividend comes from Net Profit. If the tax is imposed twice, the security market may not work. Therefore, I think that experts will still conduct research and clarify this issue.

- So you say that taxes are a source of social benefits...

- Of course, first of all, the reduction of tax barriers to small and medium-sized businesses will create favorable conditions for entrepreneurs and stimulate this sector of the economy. Secondly, the simplification of the tax system, the introduction of benefits and the simplification of tax reporting will contribute to the development of small and medium-sized businesses.

Economic security is the basis of the country's independence and stability. Countries with weak economies lose the ability to withstand external threats, and a stable and strong economy plays an important role in protecting the national interest. Therefore, economic security is considered as an important part of the National Security Strategy.

- Thank you for the conversation.

Interviewed

Gulzat NURMOLDAKYZ