🪙 Kostanay Farmers Propose to Combine Five Taxes into One for System Simplification

 

🔹 Farmers propose combining taxes on profits, property, transport, land, and environmental emissions into a single tax, calculated based on the volume of product sales. This will simplify reporting and reduce the administrative burden on enterprises.

🔹 According to the farmers' calculations, the new tax would amount to 1.68% of the enterprise's revenue. This would not result in any loss of income for the state but would simplify management and reduce administrative expenses.

🔹 The introduction of a single agricultural tax could create equal conditions for all farms, regardless of their type and size, and improve the sector's efficiency.

 

The simplification of the taxation system in the agricultural sector has been discussed in Kazakhstan for several years. This issue is regularly raised by Kostanay farmers at various levels. To form specific proposals, some farms have conducted a detailed analysis of their economic activities and are ready to present their calculations.

As noted by Alexander Klimko, President of JSC "Zarya," their enterprise analyzed its economy over 14 years and proposed combining several taxes — on profits, property, transport, land, and environmental emissions — into one. This tax would be calculated based on the volume of product sales. Klimko believes that the fee for the use of surface water resources, despite its insignificance, can also be included. According to their calculations, the tax burden would amount to 1.68% of the company's revenue. He claims that the state would not lose revenue, but the management of enterprises would become simpler and more transparent.

Currently, Klimko's farm employs 110 workers, with three full-time accounting positions. This is a significant load for a small farm, especially considering that most of the reporting is related to compliance with government requirements.

Klimko also emphasizes that the calculation of a unified tax covers not only the main production but also ancillary activities, such as the operation of the central boiler room, construction site, cafeteria, and vehicle fleet, which are used for local community needs. In addition, the company owns a store, but the tax burden on it is higher than that of private stores. As a result, the company is forced to increase product prices to cover taxes, which affects the affordability for local residents.

According to Natalia Galenchik, head of LLP "Audit Company 'EsepAudit'," agricultural producers today maintain dual accounting: for their main activities and for ancillary ones. Although ancillary activities account for a small share of the total taxes, their accounting is labor-intensive. Galenchik suggests simplifying the system by eliminating the separation of activities or differentiating their accounting based on revenue percentages.

Kairat Ospanov, director of LLP "Turar" and representative of the Association of Agricultural Producers of Kostanay Region, proposes introducing a single agricultural tax that would combine several taxes and be calculated based on hectares of land, depending on soil quality and zoning. In his opinion, this would create equal conditions for different types of farms and improve the sector's efficiency.

In turn, Zarina Bekmukhamedova, head of the outreach department of the State Revenue Department of Kostanay Region, noted that proposals for an agricultural tax were previously discussed, but they were deemed ineffective. However, farmers still have a year to propose new ideas for changes to the Tax Code.