Kazakhstan to establish Industry Development Fund
Kazakh Minister of National Economy Ruslan Dalenov announced at a government meeting that the Industry Development Fund will be created in the country. Dalenov said that manufacturing enterprises will be provided with concessional lending at no more than three percent interest rate. In addition, he said that the Kazakh government supported a number of measures to promote the goods of the domestic producers.
“This includes the signing of offtake contracts in public procurement, procurement in the quasi-public sector and subsoil users. This includes establishing obligations on the use of the Kazakh production materials and equipment for the recipients of the concessional financing. These obligations will be established for private investors in licensed contractual terms,” Dalenov added.
He said that the Kazakh government will improve the mechanism for providing investment subsidies for the acquisition of agricultural machinery. It is also planned to increase the reimbursement of transport expenses for up to 80 percent to the manufacturers of high value-added export products. In addition, the manufacturing entities will be able to get soft loans under the ‘Business Roadmap 2025’ state program. The export loans will be provided. The syndicated lending will be introduced in order for banks to provide a joint loan for one borrower.
“The mechanisms for financing the industry are expanding. The manufacturing enterprises, regardless of the size, will be provided with the concessional financing under the program of the National Bank of Kazakhstan. The long-term agreements will be taken by the national development institutions as a form of a guarantee,” Dalenov said.
As part of the measures to support the mining and metallurgical complex, the limit of automatic VAT (value-added tax) refund will be increased up to 80 percent. This will accelerate the tax refund for the period of the first to third quarter and until the end of the year. It is planned to postpone a part of the advance CIT (corporate income tax) until April 10, 2021.
“The procedure for considering the provision of reduced MET (mineral extraction tax) rates for low-profitable deposits will be accelerated. In addition, the customs control procedure for the ‘processing in the customs territory’ regime will be simplified,” Dalenov said.