State-Of-The-Nation Address 2019: New Horizons for Business Development

President of Kazakhstan Kassym-Jomart Tokayev has instructed to temporarily eliminate tax on small and medium-sized enterprises for three years.

The move will encourage entrepreneurs to further develop their businesses. The initiatives of the President on exemptions from tax and auditing will be very relevant to the growth of the new entrepreneurs.

The main tax of 3%, which will be exempted, will most likely be related to individual entrepreneurs. People who work with patents pay the 1% to 2% tax.

“In the upcoming three years, I think the number of individual entrepreneurs will remain at the same level. But there will be a quality shift. After three years, we will have a competitive population of 1.2 million people,” said Founder of Company Group, Maksim Baryshev.

Entrepreneurship is the key to a thriving economy of any country. Thus, the share of SMEs in GDP of a number of developed countries reaches 80%. 

Meanwhile, experts highlighted that business is a competition as well. Businesspeople should prove that they are producing high quality and affordable goods, in order to have a successful business.

Analysts pointed out that increasing the state order covering needs of the local market, expanding volumes and nomenclature of goods for import substitution can contribute to the development of the SME sector.

As a result, the export of goods will enhance the development of the industry as well.