In 2020, state budget revenue losses will exceed 1.6 trillion tenge, Minister of National Economy Ruslan Dalenov said at a government meeting on April 2, Toppress.kz correspondent reports.
Kazakhstan’s state budget parameters for 2020 have been adjusted according to the updated macroeconomic forecast. Budget revenues excluding transfers in 2020 are estimated at 6 414.1 billion tenge, which is 1 672.3 billion tenge less than we expected, Dalenov said.
Major decrease is expected in VAT and ETP revenues from the crude oil and use of natural resources. Minister noted that the updated budget revenue estimates were made with consideration to the latest tax incentives and exemptions introduced by President Kassym-Jomart Tokayev earlier this week.
These imply property tax exemption until the end of the year for the retail facilities, entertainment and shopping malls, cinemas, theaters, exhibitions and catering facilities, hotels and tourism organisations. Individual entrepreneurs working in compliance with the generally established taxation procedures are exempt from individual income tax until the end of the year.
VAT rate has been reduced from 12% to 8% for socially significant food products from March 30 to October 1, 2020. Small and medium-sized businesses are as well exempt from taxes and social payments until October 1, 2020.
To cover the expected budget revenue shortfalls and finance the anti-crisis package we propose to increase the guaranteed transfer from the National Fund
by 2 070 billion tenge up to 4 770 billion tenge, Dalenov noted.
This year state budget expenditures are forecasted to reach 14 270.7 billion tenge, which is 1 356.4 billion tenge more than previously expected.
Fiscal deficit is expected to be around 3.5% of gross domestic product, increasing by 840.7 billion tenge.
