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Pink Tax

Gender Pricing and Tax Policy in Kazakhstan: Does a “Pink Tax” Exist?

Women often pay more for everyday goods, from hygiene products to personal care services. In public discourse in Kazakhstan, this phenomenon is often referred to as the “pink tax.” But does such a tax exist, or are these differences the result of market pricing strategies? Is a “Pink Tax” Recognized Under Kazakhstan’s Tax Code? If understood literally as a separate levy established in the Tax Code, the so-called “pink tax” does not exist in Kazakhstan. The country’s tax system includes corporate and individual income taxes, value-added tax (VAT), excise duties, social tax, property taxes, and other mandatory payments. There is no gender-based category. In Kazakhstan, the term is generally used to describe a potential “gender markup,” where products marketed to women are priced higher than comparable versions aimed at men, even when their features are largely the same. These differences are most often observed in items such as razors, shower gels, and other personal care products, where variation may be limited to packaging or branding. However, Kazakhstan lacks large-scale, representative studies on the issue. Most claims are based on retail observations and isolated price comparisons rather than comprehensive market research. How Tax Policy Affects Essential Hygiene Products: VAT and the “Tampon Tax” Public debate increasingly uses the term “tampon tax” to describe situations where menstrual hygiene products are subject to the standard VAT rate rather than a reduced rate applied to essential goods. Starting January 1, 2026, Kazakhstan’s base VAT rate increased to 16%. Reduced VAT rates of 5% (from 2026) and 10% (from 2027), apply only to goods and services, including specific medicines and medical devices that meet established criteria. These benefits do not apply broadly to all health-related goods, only to items included in officially approved lists. If sanitary pads, tampons, and other menstrual hygiene products are not included in the approved lists, they are subject to the standard VAT rate, like most other consumer goods. The law does not treat “women’s” products as a separate taxable category. As a result, Kazakhstan does not levy a distinct “pink tax” but applies uniform VAT rules. The broader policy debate centers on whether menstrual products should be classified as essential goods for tax purposes. The social dimension is significant. According to the World Bank and UNFPA, menstrual poverty refers to limited access to hygiene products and related services such as water, sanitation, healthcare, and education. A survey conducted in Kazakhstan by Umai Cup and SOAS (2,116 participants) found that 25% of respondents had no access to hygiene products during their first menstruation, 66% used improvised materials, and 10% missed school due to an inability to purchase sanitary pads. When a recurring monthly product is taxed at the full VAT rate and rises in price along with inflation, the financial burden falls disproportionately on low-income women. For students, single mothers, and mothers of large families, this may translate into restricted access to basic hygiene. Why the “Pink Tax” Has a Greater Impact at Lower Income Levels Even without normative judgments, the economic...

Finance

Digital Inequality in Central Asia: Who Is Winning the AI Race in Finance?

AI in Central Asia’s financial sector is no longer a fashionable add-on. It has become a dividing line between leaders and laggards. A comprehensive report by the National Bank of Kazakhstan and the Fintech AI Center highlights a stark reality: while some institutions are building sovereign data centers, others are still attempting to automate basic document management processes. Kazakhstan is setting the pace. In his introduction to the report, Timur Suleimenov, Governor of the National Bank of Kazakhstan, echoes President Tokayev’s digital modernization agenda, writing: “Artificial intelligence is rapidly becoming a new paradigm for the development of the national economy… Our country faces the task of not only avoiding being left on the periphery of the global technological trend, but also of using its potential to accelerate economic modernization.” The regional AI race in finance is effectively underway, and the findings reveal deep digital inequality. The Balance of Power: Leaders and Followers A review of AI implementation across the region shows a pronounced technological divide. Kazakhstan remains the undisputed leader. Its banking sector has moved beyond experimental pilot projects. According to the report, AI is most actively deployed in the development of new products (14% of financial institutions) and marketing (13%), where neural networks enable hyper-personalized offerings. A further 10% of institutions use AI in operational activities and compliance. Elsewhere in Central Asia, governments are developing ambitious strategies, but implementation in the financial sector remains limited. Kyrgyzstan plans to launch a National AI Platform under its Digital Transformation Concept for 2024-2028. However, most of the country’s banks remain at the pilot or early implementation stage. Current AI applications focus primarily on decision-making optimization and advertising materials rather than complex financial operations. Tajikistan has positioned itself prominently at the policy level. It adopted an AI Development Strategy through 2040, the region’s first long-term framework, and initiated a United Nations General Assembly resolution on AI for Central Asia in July 2025. Yet in practice, the country’s financial market is dominated by microfinance organizations (MFOs), which are cautious in adopting advanced technologies. Their AI use is largely confined to risk management and documentation, while automation, software development, and data processing lag behind. Only 7% of institutions apply AI in financial consulting and customer support. Uzbekistan has taken a different route, prioritizing international and regional partnerships. In October 2024, the government approved its AI Development Strategy through 2030. Rather than building infrastructure independently, Tashkent is partnering with global technology providers. The state is working with Huawei to develop physical AI infrastructure and deploy ready-made industry solutions. At the same time, Uzbekistan is strengthening its academic capacity, including investments in high-performance computing for Inha University in Tashkent. Regional integration is also central to its strategy: IT Park Uzbekistan has signed a memorandum with Kazakhstan’s Astana Hub to integrate startup ecosystems. This combination, collaboration with global vendors, academic investment, and regional partnerships, is enabling Uzbekistan to narrow its technological gap more quickly. People Instead of Servers Digital inequality is most evident in spending priorities. Investment structures...

Syria

Syria After Assad: What the New Regional Order Means for Central Asia

The overthrow of Bashar al-Assad in December 2024 fundamentally reshaped Syria’s regional position. The collapse of the old power structure weakened Iran’s entrenched military and economic networks and left Russia’s previously secured foothold uncertain. As Damascus enters a new political phase, external actors are recalibrating their strategies in a landscape that looks markedly different from that of the past decade. For Central Asian governments, the shift is not merely regional. Syria is becoming a testing ground for how mid-sized states navigate post-conflict environments shaped by larger powers, and a potential arena for economic and diplomatic outreach. As influence is redistributed and new investment and trade corridors are reconsidered, decisions taken in Damascus will increasingly intersect with Central Asia’s own foreign policy and economic calculations. In this emerging landscape, a power vacuum is being filled by states seeking to advance their interests. From the earliest days of Syria’s post-Assad transition, Turkey has been particularly active. As part of its declared comprehensive support for the new Syrian authorities, Ankara has taken steps to consolidate its position in the Syrian Arab Republic. Turkey is actively participating in infrastructure reconstruction, investing in economic projects, and expanding military-technical cooperation with Damascus. In August 2025, Syria and Turkey signed a military cooperation agreement covering areas including counterterrorism training, cybersecurity, demining, military engineering, logistics, and enhanced coordination between their armed forces. That same month, the two sides agreed to establish an intergovernmental business council under the Turkish Foreign Economic Relations Board to promote trade and investment cooperation between public and private companies. Turkish exports to Syria reached $3 billion in 2025, reflecting the rapid expansion of Ankara’s economic presence. For Central Asia, Ankara’s activism carries particular weight. Turkey has simultaneously deepened its political, economic, and security cooperation across the Turkic world, meaning its posture in Syria intersects with its broader regional strategy. A central element of Turkey’s Syria policy remains the issue of refugee returns. However, the prospect of large-scale repatriation is complicated by several factors, notably the long-term presence of around 2.5 million Syrian displaced persons in Turkish society and the absence of stable socio-economic conditions in Syria to support reintegration. Over more than a decade of conflict, a generation of Syrians has grown up in Turkey, many of whom are deeply embedded in the country’s social and economic life. Turkey’s obligations under the 1951 UN Convention Relating to the Status of Refugees, including the principle of non-refoulement, further constrain policy options. Taken together, these factors make large-scale return unlikely until Syria achieves sustained political stabilization and adequate living conditions. In the longer term, Turkey’s objective of neutralizing what it describes as the Kurdish threat emanating from Syrian territory will continue to shape its strategy. Israel has also intensified its military and political engagement since the change of power in Damascus. It has taken steps to establish control over areas adjacent to the Golan Heights and to create a buffer zone, arguing that such measures are necessary to safeguard national security against potential terrorist threats. Israeli officials...

History

An Early European View of Nomadic Central Asia

During a period when Central Asia remained largely unknown to European audiences, Among Kirghiz and Turkimans offered Western readers a rare first-hand account of the vast steppe and desert regions. The book was written in the late nineteenth century by Richard Karutz, a German traveler whose work belongs to the broader tradition of European exploratory travel literature. I first encountered this book while studying in the United States and later incorporated it into my research. A copy preserved in the library of the Catholic University of America in Washington, D.C., was published in Leipzig in 1911. Since then, it has been regarded as one of the more noteworthy works in early European writing on Central Asia. Who Was Richard Karutz? Richard Karutz was a late nineteenth-century German traveler and writer who journeyed through parts of the Russian Empire’s Central Asian territories. Though not widely known today compared to some British or Russian explorers, Karutz represents a generation of European intellectuals fascinated by the perceived “frontier zones” of empire, regions seen as remote, exotic, and culturally distinct. [caption id="attachment_44400" align="aligncenter" width="312"] Richard Karutz[/caption] He was neither a colonial administrator nor a military officer; rather, he traveled as an independent observer. His writings reflect the curiosity of an educated European shaped by the intellectual currents of his era, including Orientalism and the growing interest in ethnography. Like many travelers of his time, Karutz sought to document ways of life he believed were on the verge of transformation under imperial modernization. Across the Steppe and Desert In Among Kirghiz and Turkimans, Karutz traveled among communities then commonly referred to in Russian and European sources as “Kirghiz”, a historical term often applied to Kazakhs, as well as Turkmen tribes. His route took him across vast grasslands, caravan routes, and oasis settlements shaped by pastoral migration, tribal organization, and Islamic traditions. Rather than producing an official report or military survey, Karutz wrote in a personal and descriptive style typical of travel literature. His narrative often reads as impressionistic reflection rather than systematic analysis. He documents everyday life, including nomadic encampments and felt yurts, equestrian culture and elaborate codes of hospitality, tribal leadership and clan loyalty, as well as desert trade routes and caravan movement. Mangyshlak, a peninsula on the eastern coast of the Caspian Sea in present-day Kazakhstan, features prominently in his descriptions. Significant mineral deposits were later discovered there, leading to its designation as a “peninsula of treasures.” Mangyshlak is characterized by stark desert landscapes and was once described as a barren land consisting largely of sand and stone. In the Middle Ages, it served as a gateway for trade between East and West. The region also played a role in the early history of Turkmen communities. Karutz’s writing attempts to capture both the hardship and the quiet grandeur of steppe existence. Depicting Nomadic Society A central strength of the book lies in its attention to social organization. Karutz was particularly struck by the mobility of Kazakh life, seasonal migrations, a livestock-based economy, and...

Winter Olympic Games

From Denis Ten to Mikhail Shaidorov: Kazakhstan’s Thorny Path to a Gold Medal at the Winter Olympics

The 2026 Winter Olympic Games in Milan, Italy have officially come to a close. At the end of the competition, the Kazakh team won one gold medal and placed 19th in the overall medal standings. This is the country’s best result since 1994, when the team finished 12th at the Lillehammer Olympics, with skier Vladimir Smirnov winning gold. This time, Kazakhstan’s only medal was secured by figure skater Mikhail Shaidorov, who became the first Olympic champion in the history of Kazakh figure skating. It is not the country’s first Olympic medal in the sport, however: in 2014 figure skater Denis Ten won bronze. On February 14, Shaydorov paid tribute to Denis Ten, Kazakhstan's bronze medalist at the 2014 Olympics. “I think Denis Ten influenced not only me but also figure skating in Kazakhstan as a whole. He opened the door for many skaters, including me. And that is incredibly important. I hope that the medal I won today will open new doors for the younger generation, the children of Kazakhstan, who will know that there are no limits,” he said. Denis Ten, who tragically died at the hands of petty thieves in the center of Almaty, did much to popularize figure skating in Kazakhstan. He dreamed of opening his own school and founding an ice show for this purpose. Shaidorov is one of dozens of boys and girls inspired by the achievements of the Almaty native, who learned to skate at the Ramstor shopping center. The future champion took his first steps on the same rink. As residents often say, Almaty is a big village where everyone knows one another. In fact, there is limited accessible ice in Almaty, which is why Shaidorov was forced to train in the Russian city of Sochi, as Denis Ten had previously trained in Moscow. One of the defining stories behind the young skater’s journey is connected to his training. His father, Stanislav Shaidorov, a former professional figure skater and multiple national champion, helped him pursue his ambitions, including selling a car to invest in his son’s training. Stanislav is acquainted with Russian coach and Olympic champion Alexei Urmanov. In 2017, Urmanov held training camps in Yoshkar-Ola, Russia, where young Mikhail Shaidorov performed his first double axel. “Six months later, we returned to Urmanov. He assessed Misha's progress. Over the course of a year, we learned all the triple jumps, but we had to constantly change rinks. We called every day to arrange a time, which was not always convenient for us. Finally, in the fall of 2018, we were faced with a choice: continue renting ice in Almaty at our own expense or move to Russia to train properly. I called Alexei Evgenievich. He said, ‘Okay, come on over.’ That same day, I sold my car, and the next day we bought tickets and flew to Sochi, where Urmanov works,” recalled Stanislav Shaidorov. Mikhail, who was 14 at the time, later said in an interview that he had asked his father to leave...

Economic Cooperation

Tokayev’s U.S. Visit Advances Kazakhstan’s Economic Agenda

The visit of Kazakh President Kassym-Jomart Tokayev to the United States provided an opportunity for targeted negotiations with major international corporations and financial institutions, centered on long-term investment, production localization, and Kazakhstan’s integration into global value chains. One of the key outcomes was the signing of an investment agreement worth approximately $180 million between Kazakhstan’s Ministry of Agriculture and Mars, Incorporated. The company plans to build a pet food production plant in the city of Alatau. The project will focus on the deep processing of agricultural raw materials and the production of high-value-added goods. Mars CEO Poul Weihrauch noted that the Kazakhstan facility will serve as a base for expanding the company’s presence in Central Asia and neighboring regions. A separate round of negotiations focused on healthcare. During talks with Ashmore Group, discussions centered on a proposal to build an international clinic in partnership with Ashmore Healthcare International and Samruk-Kazyna Invest, with the involvement of the Mount Sinai Health System as the operator. The initiative aligns with Kazakhstan’s strategy to develop medical infrastructure and medical tourism, as well as the Open Investment Partnership program targeting high-tech sectors of the economy. Aviation was another major component of the visit. At a meeting with Boeing executives, Tokayev confirmed the interest of Kazakh carriers Air Astana, SCAT Airlines, and VietJet Qazaqstan in expanding cooperation. Air Astana expects to receive Boeing 787 Dreamliner aircraft in the second half of 2026, which could pave the way for the launch of direct flights between Kazakhstan and the U.S. SCAT, meanwhile, is considering both the acquisition of additional aircraft and the establishment of its first maintenance and repair center at Shymkent Airport in partnership with an American company. The visit concluded with negotiations involving the U.S. International Development Finance Corporation (DFC). Its CEO, Ben Black, said Washington views Kazakhstan as a key partner in Eurasia. The discussions focused on projects in the mining sector and the development of transport and transit infrastructure critical for regional and interregional trade. According to the World Investment Report 2025 (UNCTAD), Kazakhstan overwhelmingly dominates foreign direct investment (FDI) in Central Asia. In 2024, Kazakhstan’s inward FDI stock stood at about $151 billion, far exceeding Turkmenistan (about $45 billion), Uzbekistan (about $17 billion), and Kyrgyzstan and Tajikistan (around $4 billion each). The negotiations in Washington point to Kazakhstan’s focus on building long-term institutional partnerships rather than pursuing isolated investment deals, a signal intended to reassure international investors about the stability and openness of the market. As previously reported by The Times of Central Asia, Tokayev also took part in the inaugural meeting of the Board of Peace in Washington, where Kazakhstan signaled its willingness to contribute to Gaza’s reconstruction and broader stabilization efforts, including potential financial support and participation in peacekeeping initiatives.