From July 1, Kazakhstan Introduces Minimum Import Prices for Wheat, Flour, and Sunflower Oil to Curb VAT Evasion

Kazakhstan’s Ministry of Trade and Integration (MTI) has announced the introduction of Minimum Price Levels (MPL) for a number of socially significant imported goods. These threshold prices will take effect from July 1 and remain in force until September 30, 2025.

The list includes durum and other types of wheat, wheat flour, and sunflower oil. The following minimum import prices have been established:
• 80.3 tenge per kilogram for durum wheat,
• 74.84 tenge per kilogram for other types of wheat,
• 139.81 tenge per kilogram for wheat flour,
• 594.04 tenge per liter for sunflower oil.

The ministry clarified that MPL does not regulate actual wholesale or retail prices on the domestic market. Instead, it is a tax administration tool used exclusively for calculating value-added tax (VAT) on imports.
According to the MTI, this mechanism is also intended to prevent attempts to evade VAT payments by underreporting customs values. The issue remains relevant: in 2023, there were cases of wheat being imported at 9,000 tenge per ton, while the market price ranged from 120,000 to 140,000 tenge. In 2024, sunflower oil was declared at prices below 275 tenge per liter, while the average market price in Kazakhstan exceeded 800 tenge.

MPL is calculated as the average between the price declared by the importer and the average price offered by local producers. This approach aims to eliminate schemes where goods are imported at artificially low prices to reduce VAT obligations.

The list of products subject to MPL was initially approved in October 2024 and is reviewed and updated quarterly. As of now, it covers 11 categories, including key food staples.

This regulatory measure is aimed at ensuring fair competition and increasing state budget revenues through more accurate taxation of foreign trade operations.