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Kazakh President Kassym-Jomart Tokayev has ordered the government to scale back its plan to raise value-added tax, directing a four-percentage-point cut from the proposed 20% rate as part of the 2026 tax overhaul to ease pressure on businesses and consumers.

This was reported by the Infohub.kz news agency.

What Tokayev said

In an interview with the Turkistan newspaper published on January 5, 2026, Tokayev said he instructed the cabinet to soften the 20% VAT plan by lowering it by four points. The 20% rate was initially put forward by the previous government and later supported by the current cabinet during discussions on the 2026 tax reform.

Where the rate stands now

Kazakhstan’s VAT is currently 12%. A four-point reduction from the proposed 20% would set the target at 16%—still higher than today’s rate, but a more measured step than a jump to 20%.

Why it matters

A smaller increase could limit pass-through to consumer prices and help keep economic activity steady. Tokayev has emphasized that the tax overhaul must deliver fairness and predictability for both businesses and households.

What’s next

The final rate and transition timeline will be determined as the new Tax Code is drafted and debated in Parliament, with input from business groups. The government’s economic team will assess the impact, define the transition period, and refine tax administration details.