{
  "title": "Republic of Kazakhstan: Selected Issues",
  "publication": "IMF Staff Country Reports, February 7, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/02/07/republic-of-kazakhstan-selected-issues-49029",
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  "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.",
  "sections": [
    {
      "heading": "Executive summary",
      "content": "- The paper conducts a review of taxes on labor in Kazakhstan, focusing on personal income tax and other taxes on labor.\n- Labor taxes currently have a relatively low level of collections but have the potential to become an important source of non-oil fiscal revenue.\n- These taxes have limited responsiveness to oil-sector fluctuations and thus help enhance the resilience of public finance to oil shocks.\n- The existing labor tax system is characterized by:\n  - a low, flat headline rate;\n  - limited progressivity except at the lower end of household income distribution due to deduction of the minimum wage;\n  - a relatively high tax burden mainly borne by the formal sector."
    },
    {
      "heading": "Findings on burden, progressivity, and efficiency",
      "content": "- Effective burden: Labor taxes exhibit a relatively low headline rate but create a relatively high tax burden largely concentrated in the formal sector.\n- Progressivity: The system shows limited progressivity overall; an exception is increased progressivity at the lower end of the household income distribution stemming from deduction of the minimum wage.\n- Efficiency and resilience:\n  - Labor taxes are found to have limited responsiveness to oil-sector fluctuations.\n  - This limited responsiveness contributes to enhancing the resilience of public finances to oil shocks."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Implement a targeted strategy for deductions and exemptions to improve equity and efficiency.\n- Expand the tax base to increase non-oil fiscal revenue.\n- Continue improvements in tax design, administration, and collection enforcement to raise revenue and fairness.\n\n---\n\n Content in this bundle\n\n- Republic of Kazakhstan: Selected Issues; IMF Country Report No. 20/38; December 19, 2019\n  - Republic of Kazakhstan: Selected Issues; IMF Country Report No. 20/38; December 19, 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Republic of Kazakhstan: Selected Issues; IMF Country Report No. 20/38; December 19, 2019 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: February 7, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513529288.002",
    "The paper conducts a review of taxes on labor in Kazakhstan, focusing on personal income tax and other taxes on labor.",
    "Labor taxes currently have a relatively low level of collections but have the potential to become an important source of non-oil fiscal revenue.",
    "These taxes 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:",
    "Effective burden: Labor taxes exhibit a relatively low headline rate but create a relatively high tax burden largely concentrated in the formal sector.",
    "Progressivity: The system shows limited progressivity overall; an exception is increased progressivity at the lower end of the household income distribution stemming from deduction of the minimum wage.",
    "Efficiency and resilience:",
    "Implement a targeted strategy for deductions and exemptions to improve equity and efficiency.",
    "Expand the tax base to increase non-oil fiscal revenue.",
    "Continue improvements in tax design, administration, and collection enforcement to raise revenue and fairness.",
    "**Republic of Kazakhstan: Selected Issues; IMF Country Report No. 20/38; December 19, 2019**"
  ],
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