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Kazakhstan to reduce taxes for the needy 10 times

The President of Kazakhstan, Nursultan Nazarbayev, promised 10-fold reduction in taxes from January 1, 2019. Lenta.ru reported with reference to Tengrinews.

«To support Kazakhstani people who receive relatively low wages, from January 1, 2019, I propose to reduce the tax burden tenfold and tax them at a rate of 1 percent,» the president said at a parliamentary session.

Benefits for individual tax will be introduced for those who receive a salary, which is 25 times less than the minimum calculated index per month (analogous to the Russian minimum wage).

The released funds as a result of this tax maneuver will be used to increase the salaries of Kazakhstani people, while the burden on the employer will not be increased.

Released funds from this reduction will be used to increase the payment for their labor. As a result, wages of at least one third of the country’s hired workers — more than two million people — will grow without increasing the burden on employers.

Nursultan Nazarbayev

The President also noted that in the future the government should study the possibility of a switch to a progressive taxation scale.

The Russian authorities, the report says, are wary of introducing a progressive taxation scale, for example, the Russian President Vladimir Putin is convinced that it is possible to achieve a fair redistribution of resources in a different way.