Mr. Eldar Shamsutdinov, famous analyst, identified a systemic mistake in the new tax introduced by the Ministry of the National Economy.

Literal translation of Mr. Shamsutdinov’s assessment below (from Telegram-channel):

Azamat Amrin, Vice-Minister of the National Economy said, as follows – “At present, we have the property tax we impose on individuals and the progressive taxation. The higher is the cost, the higher is the tax rate – from 0.01% to 1.5%. But we got tax-payers who own tens of apartments. The tax rate is accrued for each individual cost. For example, one-bedroom apartment that costs KZT 20 million shall be subject to one rate.  But, if we are looking at 10 flats, which is KZT 200 million, the rate is different and much higher. That is why, we plan on introducing the aggregate calculation of the property tax on this category of estate owners. The rate will be much higher”.

Taxes are a flexible, effective and very dangerous instrument of social policy. You must know exactly what you are doing, and what you want to achieve, otherwise,

you will see a massive immigration of capitals from this country

Such public statements indicate at lack of understanding of the structure of the Kazakh economy and the nature of the tax on wealth.

Ministry of National Economy, instead of treasury replenishment, now thinks how make all equally poor,

While they need to think how to make all differently rich.