Page 287 – The Times Of Central Asia

08 May 2025

Business & Economy, Home, Kazakhstan Local Politics, Kazakhstan, Kazakhstan Business & Economy, Features, Kazakhstan Featurees

Kazakhstan’s Lower House Passes Controversial New Tax Code Amid Public Backlash

May 8, 2025
By Andrei Matveev

On April 30, the Mazhilis, the lower house of Kazakhstan’s parliament, approved a new Tax Code by majority vote. The draft law, part of President Kassym-Jomart Tokayev’s broader economic reforms, has triggered intense public and political debate. While proponents highlight its emphasis on modernization and fairness, critics warn of increased pressure on businesses and potential inflation. The final decision now rests with the president, following Senate review.

Key Reforms and Adjustments

According to Berik Beisengaliyev, head of the Mazhilis working group, the final version of the Tax Code diverges significantly from the original draft submitted in August 2024.

One of the major changes concerns VAT (value-added tax). The government’s initial proposal to raise the VAT rate to 20% was scaled back to 16%. The threshold for mandatory VAT registration has been raised from 15 million to 40 million tenge. Reduced VAT rates are set for medical services and medicines, 5% from 2026 and 10% from 2027. Goods and services tied to guaranteed free medical care, compulsory health insurance, and treatment of orphan and socially significant diseases will be VAT-exempt.

Additionally, the VAT exemption will extend to socially significant food items, books published domestically, and related publishing services. Agricultural producers will benefit from a higher VAT offset, increased from 70% to 80%.

Other reforms include a shift from a permissive to a prohibitive activity list, with a unified 4% tax rate that regional maslikhats can adjust by ±50%. Special tax regimes for business-to-business transactions are also being expanded.

Corporate income tax (CIT) has been reduced to 5% from 2026 and 10% from 2027 for social sector organizations. The social tax deduction for people with disabilities has increased to 5,000 MCI (19.6 million tenge in 2025). Meanwhile, the CIT rate for banks and the gambling industry has been raised to 25%, though a 20% rate remains on banks’ business lending income.

A progressive income tax scale will be introduced: 10% on annual wages up to 8,500 MCI (33.5 million tenge or roughly $65,000), and 15% on income above that threshold. For dividends, the rate will be 5% on income up to 230,000 MCI (1 billion tenge, or $2 million), and 15% thereafter.

The code also proposes higher excise taxes on alcohol, tobacco, and heated tobacco products, along with a new excise on energy drinks as part of a health initiative.

Land use provisions have been amended to penalize inefficient use of agricultural land, with payment rates increasing up to 100-fold. Mineral resource usage rates will vary based on license duration and the number of plots held.

Political Dissent and Criticism

The Ak Zhol party opposed the code in both readings, citing disproportionate fiscal burdens on SMEs while sparing large extractive firms. The party also criticized the VAT hike as inflationary and warned about the opaque nature of the risk management system (RMS), which they say allows for discretionary actions by tax authorities.

“The code is bloated with over 100 new articles, making it more difficult for entrepreneurs to navigate. This is not what President Tokayev instructed,” the party stated.

Mazhilis member Erlan Stambekov abstained from voting and publicly explained his reasons:

“I couldn’t vote ‘yes’ because I believe these changes do not support the development of our economy or SMEs. Quite the opposite,” he wrote on Facebook. “The code is being used to plug a fiscal gap the government can’t cover, even with National Fund borrowings.”

Political analyst Daniyar Ashimbayev echoed these concerns, suggesting that the reform package was poorly timed and inadequately managed:

“Of all the fiscal policy scenarios, the most unfortunate was chosen at the most unfortunate time. Many officials appear unconvinced, some remain silent, and others voice their views on social media. It signals a lack of political coordination and common-sense governance.”

Uncertain Presidential Approval

Despite its passage in the Mazhilis, the future of the new Tax Code remains uncertain. Given the public and political pushback, President Tokayev may call for revisions or delays. As Ashimbayev put it, this could be a moment to “let off steam” rather than push through contentious reforms unchanged.

08 May 2025

Life & Culture, Uzbekistan, Uzbekistan Features, Uzbekistan Life & Culture, Features

Soviet-Era Spacecraft May Crash to Earth This Week, Uzbekistan Among Monitored Zones

May 8, 2025
By Sadokat Jalolova

As previously reported by The Times of Central Asia, a Soviet spacecraft launched from Baikonur more than five decades ago is expected to re-enter Earth’s atmosphere between May 9 and 11, 2025. Known as Kosmos-482, the probe was part of the Soviet Union’s Venera program aimed at exploring Venus. However, due to a launch failure in 1972, it never escaped Earth’s orbit and has been circling the planet ever since.

Kosmos-482 was engineered to endure the extreme conditions of Venus, making it significantly more robust than typical satellites. Its descent module, weighing around 495 kilograms (approximately 1,100 pounds), features a durable titanium shell, raising the possibility that parts of the spacecraft could survive re-entry and reach the Earth’s surface.

Experts estimate the spacecraft will re-enter at speeds of up to 27,000 kilometers per hour (around 17,000 miles per hour). The potential impact zone spans between 52 degrees north and south latitude, covering much of the inhabited world. Despite this wide range, the risk to human life is regarded as minimal. Most likely, the spacecraft will either disintegrate in the atmosphere or fall into the ocean.

In Uzbekistan, the national space agency Uzcosmos has assessed the probability of debris landing within the country at between 0.3% and 0.5%. Ahror Agzamov, head of the New Technologies Department at Uzcosmos, stated that while the risk is low, the agency is closely monitoring the situation.

“While most of the spacecraft will burn up upon re-entry, the nearly half-ton titanium sphere, designed to operate under Venus’s harsh conditions, poses a particular concern,” Agzamov explained. “It is expected to survive re-entry, and despite being equipped with a parachute, that system may not function after 53 years in space. The object could strike the Earth at speeds up to 500 kilometers per hour.”

Agzamov cautioned the public against interacting with any debris. Due to the possibility of hazardous chemical residues in the spacecraft’s components, any discovered fragments should be reported immediately to local authorities, he stated.

Uzbekistan’s Role in the Venera Program

Uzbekistan has a historical connection to the Soviet space program. The former Tashkent Mechanical Engineering Design Bureau contributed to the later stages of the Venera missions by developing soil sampling and drilling equipment used on Venera-13 and Venera-14 (1982), and Vega-1 and Vega-2 (1985). These devices were tested at a facility in the village of Nevich in the Tashkent region.

As Kosmos-482 begins its final descent, space agencies around the world continue to track its trajectory to provide timely updates and ensure public safety.

08 May 2025

healthcare, Tajikistan International Affairs, Tajikistan

UNICEF Delivers Over 500 Pieces of Medical Equipment to Tajikistan

May 8, 2025
By Vagit Ismailov

The United Nations Children’s Fund (UNICEF) has handed over more than 500 units of modern medical equipment to the Ministry of Health and Social Protection of the Population of Tajikistan in a significant move to bolster the country’s healthcare system.

The official handover ceremony took place on May 6 in Dushanbe and was attended by Deputy Health Minister Shodikhon Jamshed and international partners.

Jamshed expressed gratitude for UNICEF’s longstanding cooperation, adding that such support plays a vital role in strengthening Tajikistan’s healthcare capacity. The new equipment, including CPAP (Continuous Positive Airway Pressure) machines and oxygen concentrators, will be used to treat newborns with respiratory difficulties and patients requiring oxygen therapy.

“The equipment will be distributed across 73 neonatal care facilities nationwide. Additionally, training courses will be held for healthcare workers on using these devices and providing respiratory care to newborns,” Jamshed stated.

Since its founding in 1946, UNICEF has been active in Tajikistan through various initiatives aimed at advancing children’s rights and improving access to essential services such as education and healthcare.

One of its flagship efforts includes a $1 million juvenile justice reform project, implemented in partnership with the Swiss government. The initiative seeks to establish alternative measures for minors in conflict with the law, focusing on rehabilitation and reintegration.

In the field of early education, UNICEF and USAID are implementing a five-year, $7.5 million program to enhance school readiness. This includes teacher training, updated educational materials, and the promotion of inclusive learning environments.

To address malnutrition, UNICEF has launched a three-year program in Khatlon and Dushanbe aimed at improving maternal and child nutrition and reducing mortality. Emphasis is placed on primary healthcare and preventive measures.

In collaboration with the European Union, UNICEF is also contributing to the restoration of medical infrastructure. One example is the refurbishment of the central district hospital in Tursunzade, part of Tajikistan’s National Health Strategy 2030, designed to expand access to essential health services across the country.

08 May 2025

Home, Local Politics, Kyrgyzstan, Kyrgyzstan Local Politics

Issyk-Kul Authorities Launch Campaign to Improve Traffic Rule Awareness

May 8, 2025
By Anton Chipegin

Law enforcement authorities in Kyrgyzstan’s Issyk-Kul region have launched a campaign to improve public knowledge of traffic regulations. As part of the initiative, information boards explaining the meaning of road signs have been installed along major roads.

The Ministry of Internal Affairs stated that the campaign aims to promote better understanding and adherence to traffic laws among both drivers and pedestrians. In addition to roadside boards, educational content is being disseminated via LED screens and billboards across the region.

“The main objective of the campaign is to help citizens better understand and follow traffic rules. These materials will be useful for both drivers and pedestrians, and are also aimed at improving overall road safety,” the ministry noted.

Official statistics indicate that Kyrgyzstan ranks third among Central Asian countries for the number of traffic accidents, with one in three incidents attributed to violations of rules of the road by drivers.

“Our efforts are aimed at ensuring road safety in the Issyk-Kul region. Compliance with traffic rules is important for each of us and is a guarantee of safety for both us and other road users,” stated the regional Department of Internal Affairs.

The initiative comes amid broader concerns about driving standards in Kyrgyzstan. Earlier this year, government officials revealed that more than half of all driver’s licenses in the country were obtained illegally, a disclosure that has spurred new efforts to enforce compliance and raise road safety standards nationwide.

08 May 2025

Home, Business & Economy, Kazakhstan, Kazakhstan Business & Economy

Gold and Copper Exploration in Kazakhstan Gets Boost from Australian Joint Venture

May 8, 2025
By Dmitry Pokidaev

Australian mining firm C29 Metals Limited has entered into a joint venture agreement with Bask International Group Ltd, a company registered in Astana. The newly established joint venture (JV) aims to explore promising copper and gold deposits across Kazakhstan.

C29 Metals is not a newcomer to Kazakhstan’s mineral sector. In the spring of 2024, the company obtained a geological exploration license for its Ulytau project, which includes several solid mineral deposits, notably uranium. It has since submitted two additional applications for uranium exploration. However, according to a recent company announcement, the new JV will focus exclusively on copper and gold and will not be involved in C29 Metals’ uranium interests in the country.

The joint venture, registered at the Astana International Financial Center (AIFC), will concentrate on identifying and acquiring exploration projects with significant geological potential. According to the agreement, C29 Metals will hold a 75% stake in the venture, with Bask International Group retaining 25%. C29 will fully finance the geological exploration, thereby relieving its Kazakh partner of any financial burden. The board of directors will comprise two representatives from the Australian company and one from the Kazakh side.

“The conclusion of this joint venture agreement marks another important milestone in our strategic growth plans,” said Shannon Green, Managing Director of C29 Metals. “The partnership with Bask International Group in Kazakhstan will give us access to opportunities beyond our typical reach. Bask’s network and capabilities will enable us to move at an unprecedented pace as we scale operations.”

Yerlan Issekeshev, head of Bask International Group Ltd, emphasized Kazakhstan’s untapped mining potential: “Kazakhstan is on the cusp of a new era in resource development. While exploration slowed during the post-Soviet period, the country’s mineral wealth remains vast and underexplored.”

As previously reported by The Times of Central Asia, Kazakhstan is set to auction off 50 gold and rare metal deposits in June 2025, offering electronic tenders for exploration and development rights.

08 May 2025

Education, Kazakhstan Local Politics, Local Politics, Kazakhstan

Almaty University Criticized After Female Students Told to Bow to Men

May 8, 2025
By Vagit Ismailov

A controversy has erupted at the Kazakh National Pedagogical University (KazNPU) in Almaty after first-year female students were instructed to bow to men during an orientation session. The incident, which triggered widespread criticism, has drawn sharp condemnation on social media and reignited debates about gender roles in Kazakhstani society.

According to social media posts, female students were gathered in an auditorium where they were shown a video containing behavioral “recommendations.” In the footage, men of varying ages advised young women on how to conduct themselves in public, including avoiding revealing clothing, refraining from loud speech, and bowing to men as a sign of respect.

The online response was overwhelmingly critical:

“I am for modesty, but bowing? I’m a guy myself, and I don’t support this.”

“At this rate, it won’t just be North Korea waiting for us, but Afghanistan too. What’s next, banning women from education?”

“Instead of teaching girls about their rights, financial literacy, or where to seek help, they’re being taught useless things, like how to be patient and accommodating.”

“Disobedient girls are Kazakhstan’s main problem, aren’t they?”

“And when will men be taught not to beat women and to respect their mothers?”

The KazNPU administration released a statement in response, promising stricter oversight of educational materials used in student events:

“On May 5, an educational session was held at the university to promote national values and enhance the cultural and moral awareness of students, aligned with the ethical philosophy of Abai Kunanbayev. Although similar content has not previously drawn criticism, the video shown during this session sparked a mixed reaction and significant debate. The administration acknowledges the concerns and will exercise heightened caution in selecting materials for such events going forward.”

The university also stated that KazNPU is a secular institution committed to upholding students’ rights to personal choice and freedom of expression.

The controversy continues to fuel discussions online, highlighting broader tensions between traditional values and contemporary views on gender and education in Kazakhstan.

This is not the first time Kazakhstani universities have come under scrutiny. In February 2025, a second-year student at Nazarbayev University in Astana was detained by law enforcement after being caught secretly recording female students in a restroom. The university launched an internal investigation following a public outcry.

In another incident, a guest business coach at a university in Almaty, later identified as Aika Aleami, prompted complaints after asking students to close their eyes and sing along to what appeared to be religious music. Aleami later clarified that the exercise was intended as a mindfulness technique, not a religious practice, citing its popularity in Western wellness programs.