The Income Gap Between Rich and Poor Kazakhs Is Widening

Analysts at Ranking.kz note that the income gap in Kazakhstan has remained consistently high in recent years. According to the National Statistics Bureau (NSB), from 2019 to 2023, the incomes of the poorest 10% and the wealthiest 10% of Kazakhstani citizens differed by an average factor of 5.9 to 6. In 2024, the gap reached a record high of 6.2 times. Who Are the Poor and Who Are the Rich? The NSB divides the population into ten equal income groups, or deciles. Formally, not only the bottom 10% can be classified as poor, but also the four adjacent deciles. Their average per capita income does not even reach the minimum monthly wage of 85,000 KZT ($157). Collectively, this bottom half of the population receives only 30.2% of the country’s total income. At the other end of the spectrum, the wealthiest 10% account for 24.1% of total income. This group includes individuals with monthly incomes ranging from 181,300 KZT ($336) to 1.6 million KZT ($2,963). However, this wide income range also includes many middle-class earners. Only a small fraction are truly wealthy. Salaried Employees: Who Earns What Among salaried employees (excluding the self-employed and those working in small businesses), income disparities remain stark. In 2024: 3.3% of employees (112,100 people) earned over 1 million KZT ($1,852) per month. 6.1% (210,600 people) earned less than 100,000 KZT ($185). The largest share of employees fell into the following income brackets: 100,000-200,000 KZT ($185-370) - 23.9% 200,000-300,000 KZT ($370-555) - 23.2% High salaries are more prevalent in sectors with higher nominal wages: Finance and insurance - 13.9% of employees earned over 1 million KZT Information and communications - 12.6% Professional, scientific, and technical fields - 10.1% Among civil servants, only 0.7% earn this amount. Meanwhile, low-wage earners (earning under 100,000 KZT) are most concentrated in: Administrative and support services - 18.4% Agriculture - 12.2% Across most industries, the most common salary level is between 200,000 and 400,000 KZT ($370-740). Regional Disparities Unsurprisingly, the highest concentration of “salary millionaires” is found in Kazakhstan’s oil-producing regions: Mangistau - 14.5% Atyrau - 11.5% In major cities, the numbers are more modest: Almaty - 6% Astana - 4.8% The regions with the lowest share of low-paid workers (earning under 100,000 KZT) are: Turkestan - 11.1% North Kazakhstan - 10.3% Zhambyl - 10% However, the Turkestan region remains one of the most economically vulnerable: in the first quarter of 2025, 8.1% of its population lived below the subsistence level, compared to the national average of 4.5%. More than 175,000 families survive on an income of just 52,500 KZT ($97) per person. Spending Patterns: Common Ground and Divergence Income inequality is also reflected in spending patterns. Despite the income gap, both poor and relatively affluent citizens spend a disproportionate share of their budgets on food. The lowest-income group spends 60.6% on food, while the wealthiest decile still spends 51.7%. For comparison, in developed European countries, the average is just 8-12%. However, differences become clearer in other spending categories. Wealthier citizens...

Uzbekistan to Introduce Special Tax System for High Earners

Uzbekistan is preparing to implement a new tax regime targeting the country’s highest earners, marking a significant shift in its approach to income taxation. The plan was announced by Mubin Mirzayev, First Deputy Chairman of the State Tax Committee, during a press conference on April 1. According to Mirzayev, more than 18 million of Uzbekistan’s 38 million residents currently earn income and pay taxes. “We have developed special tax rules for individuals with the highest incomes,” he said. “A comprehensive database will be established to prevent income concealment or misreporting.” The new system, which will take approximately a year to fully develop, will be electronic and designed to track both domestic and international income. “If a resident of Uzbekistan earns income abroad, they will also be required to pay taxes on it here,” Mirzayev stated. For non-residents, the system will consider taxes already paid in other jurisdictions to prevent double taxation. Currently, most Central Asian countries apply a flat income tax rate regardless of earnings. Uzbekistan’s plan signals a departure from that model, aligning more closely with progressive tax policies seen in other parts of the world. Mirzayev noted that the proposal echoes ideas once suggested by U.S. President Donald Trump, who advocated for tailored tax rules for high-income individuals to enhance fairness. The reform is part of broader government efforts to strengthen tax collection and promote greater equity in the system. Officials emphasize that the overarching goal is to ensure that all citizens, particularly high earners, contribute their fair share.