Republic of Kazakhstan: Selected Issues

February 7, 2020

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Republic of Kazakhstan: Selected Issues, (USA: International Monetary Fund, 2020) accessed June 12, 2025

Summary

This Selected Issues paper conducts a review of taxes on labor in Kazakhstan, which, despite the current relatively low level of collections, have the potential to become an important source of non-oil fiscal revenue. This paper focuses on one group of non-oil taxes, personal income tax and other taxes on labor, and reviews their effective burden, progressivity, and efficiency. These taxes are found to have limited responsiveness to oil-sector fluctuations, and thus help enhance the resilience of public finance to oil shocks. The existing labor tax system is characterized by a low, flat headline rate, limited progressivity except at the lower end of household income distribution due to deduction of the minimum wage, and a relatively high tax burden mainly born by the formal sector. Having a more equitable and efficient labor tax system would involve a targeted strategy for deductions and exemptions, expanding the tax base, and continuing to improve tax design, administration, and collection enforcement.

Subject: Budget planning and preparation, Fiscal policy, Fiscal risks, Fiscal rules, Income, National accounts, Personal income, Personal income tax, Public financial management (PFM), Taxes

Keywords: Africa, Australia and New Zealand, Budget planning and preparation, CR, Firm performance, Fiscal risks, Fiscal rules, Global, Income, Infrastructure investment, Infrastructure project, Investment inefficiency, ISCR, Personal income, Personal income tax, PIT progressive, PIT rate, Rate, Tax burden

Publication Details

Pages:

69
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/038
Stock No:

1KAZEA2020002
ISBN:

9781513529288
ISSN:

1934-7685

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