New Business Tax Introduced In Kazakhstan

In 2016, Kazakhstan will enact a law, according to which manufacturers and importers of about 1,500 commodity groups will have to pay for garbage collection, transportation, processing and neutralization, as well as disposal of waste.

These funds will flow to the new single operator for extended obligations of manufacturers. In addition, the new law requires manufacturers that fall under its scope to invest in establishment of a single state operator engaged in disposal of waste.

“In September 2015, the country adopted the law on introduction of changes to some legislative acts related to the issues of industrial and innovation policy. It includes introduction of extended obligations of producers and manufacturers," so said executive director of the Association of Soft Drinks Producers Aliya Mamytbaeva during a press conference entitled “New Model of Extended Obligations Of Producers as a Threat to Kazakhstan's Business."

She also added, “We support the government initiatives aimed at improving the environment, but the establishment of a single operator meets neither the principles of competition nor the ideology of the comprehensive privatization plan.

There will emerge a monopoly, while the rest of the waste disposal market participants will be at a disadvantage. According to the law, the government can participate as a shareholder in the establishment of the single operator. In accordance with the law on competition, the state is involved as a business entity in cases when a particular market has no such private entity.

But, according to the statistics, the country currently has about 500 entities engaged in collection, transportation and disposal of waste."

Source: easttime.info