Kazakh Parliament raises tax on alcohol, tobacco and property

The Kazakh Senate (parliament's lower chamber) passed an amedment to the law increasing taxes on luxury goods, transport and property and excise taxes on tobacco and alcohol, azh.kz reported on November 21.

The excise rates for strong alcoholic beverages will be increased from 500 tenges ($3.3) to 1000 tenges ($6.6) in 2014, up to 1200 tenges ($7.8) in 2015 and up to 1600 tenges ($10.5) in 2016.
The issue of increasing the rates on low alcohol products is proposed for consideration in 2014.

The rate of excise duty on cigarettes will be increased from 3000 tenges (about $20) to 3900 tenges ($25.5) in 2015 and up to 5000 tenges ($32.7) in 2016.
With regard to the tax on luxury properties, the tax on real property worth over $1 million will be increased threefold.

The tax rate for cars with a 4000-5000 cubic centimetre engine capacity will be increased from the 117 to 130 monthly indexes (one monthly index = 1731 tenge or $11). The tax rate for cars with an engine capacity exceeding 5000 cubic centimetres will reach 200 monthly indexes. The new tax rate will be applied to vehicles purchased after January 1, 2014.

The documents are being submitted to Kazakh President Nursultan Nazarbayev for signing. The document will come into force after it is signed by the head of the state and published in official mass media. 

"It is necessary to impose indirect taxes on luxury goods, expensive cars and all sorts of evil passions such as alcohol and cigarettes and so on," the president said at the XV Congress of the Nur Otan Party, on October 18.

"We have created a class of wealthy citizens. This is good as it was our goal, deliberate policy. Now when the wealthy class expands, they can and should contribute towards social responsibility. This is common practice all over the world. Meanwhile in our country a millionaire and a worker pay the same 10 per cent income tax. We should think about it," he said.