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On January 5, 2026, President Kassym-Jomart Tokayev said Kazakhstan will set value-added tax at 16% under a new Tax Code—below earlier proposals of 20%—to support steady growth and a fairer distribution of the tax burden.

This was reported by the Infohub.kz news agency.

What changed—and when

In an interview published on January 5, 2026, Tokayev confirmed the VAT rate will be fixed at 16%. He noted that both the previous and current cabinets had proposed lifting VAT to 20%, but he instructed a four percentage-point reduction from those proposals.

The move is part of a broader tax reform embedded in the new Tax Code.

Why 16% instead of 20%

Tokayev framed the debate over VAT as a normal policy discussion, adding that many countries periodically adjust consumption taxes. As context, he cited Russia, where VAT has recently risen to 22%.

According to the president, the 16% rate is intended to preserve budget stability while distributing the load more fairly across businesses and society.

From control to partnership

The new Tax Code is designed to shift tax relations from a narrow focus on control to a partnership among the state, business, and citizens. Tokayev described taxes as part of a modern social contract: by paying taxes, citizens and companies help fund quality public services, infrastructure, security, and broader economic opportunities.

The reform aims to rebalance the burden more fairly, bolster the core of the economy, and support vulnerable groups.

Transparency and tax culture

Tokayev emphasized that effective fiscal policy depends not only on administration but on tax culture and shared responsibility. He said every tenge paid should be spent transparently, a principle that strengthens civic accountability and reduces tolerance for corruption.

He added that the new Tax Code is built to be clear and easy to navigate, with tangible results expected to begin showing this year.