• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00200 0%
  • TJS/USD = 0.09163 -0.11%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28571 0%
18 February 2025

Viewing results 1 - 6 of 5

Single Securities Market to Be Launched in the EAEU

Last week, the Eurasian Intergovernmental Council convened in Almaty, where the heads of government from the Eurasian Economic Union (EAEU) member states agreed to standardize securities trading across their stock exchanges. The agreement is expected to further integrate the financial markets of the five member countries, according to Myktybek Abirov, vice president of the Kyrgyz Stock Exchange. “The main purpose of the agreement is to harmonize the rules and standards of securities circulation within the common economic space, which will facilitate financial market integration, improve investor access, and enhance liquidity,” the Kyrgyz Ministry of Economy and Commerce stated. “The adoption of such rules will create new opportunities for businesses and investors, expanding their reach and strengthening economic ties between EAEU countries.” Abirov told The Times of Central Asia that the agreement will allow both private and state-owned companies to list their securities on stock exchanges across EAEU member states. “This is a welcome development, as it gives our issuers access to other stock markets,” Abirov said. “They will be able to place their securities in Russia, Kazakhstan, Belarus, and Armenia, while investors will gain broader access to financial instruments, enabling them to diversify risks.” According to Abirov, efforts to establish a unified securities market within the EAEU have been ongoing for a decade. The newly reached agreement includes the mutual recognition of financial brokers across member states’ stock exchanges. “Each EAEU country currently has slightly different listing requirements. Now, the Eurasian Economic Commission has set unified standards that companies must meet,” he explained. “Securities that comply with these standards will be tradable on financial markets without additional procedures.” Private financial sector representatives have expressed unanimous support for the initiative, emphasizing that greater integration will be beneficial - provided that administrative and regulatory procedures are sufficiently streamlined. The key challenge now is ensuring effective implementation, they noted. Officials at the Kyrgyz Stock Exchange hope that the first such trades will take place this year. Meanwhile, the Kazakhstan Stock Exchange (KASE) has confirmed its readiness to list foreign securities under the new framework.

Kazakhstan Introduces Tax Incentives to Encourage Business Lending

Kazakhstan's draft Tax Code, set to take effect in 2026, proposes a differentiated corporate income tax (CIT) rate for banks, aiming to encourage business lending by making it more financially attractive than consumer lending or government securities investments. The proposed changes were announced by Akylzhan Baimagambetov, Deputy Chairman of the National Bank of Kazakhstan, during a recent briefing. He explained that Kazakhstani banks currently derive income from three main sources: Government securities, whose earnings are currently tax-exempt. Consumer lending, taxed at 20% CIT. Business lending is also taxed at 20% CIT. As banks tend to prioritize consumer lending over business loans, monetary authorities are now restructuring tax incentives to alter this trend. “The proposed approach is as follows: investments in government securities will now be subject to corporate income tax while lending to businesses will be taxed at a lower rate - 20% CIT. Meanwhile, all other income, including government securities and consumer lending, will be taxed at 25% CIT,” said Baimagambetov. Possible VAT Increase to 20% Another major tax reform under discussion is an increase in value-added tax (VAT) from the current 12% to as high as 20%. “We have not yet finalized the VAT rate, but the proposed range is 16% to 20%. Our calculations show that a higher VAT rate would increase the average burden on businesses by just 4%, but the end consumer will certainly feel the price hike. Inflation may rise by up to 4.5%, and we need to mitigate this impact,” said Deputy Prime Minister Serik Zhumangarin. To counterbalance the inflationary effect, the government plans to expand targeted social assistance, adjust salaries in state institutions, and increase pensions. In addition, if VAT is raised to 20%, the government intends to reduce payroll taxes by 10% by eliminating the social tax and mandatory employer pension contributions. “If we are not permitted to reduce these expenses, we will not increase VAT significantly - it’s a matter of checks and balances. We plan to submit our VAT proposal to parliament in the second half of February,” Zhumangarin added. Lower VAT Registration Threshold and Expected Revenue Boost Another key tax reform under discussion is a reduction in the VAT registration threshold from 78.6 million tenge to 15 million tenge. The government expects this change to increase tax revenues by 5-7 trillion tenge. In 2024, Kazakhstan’s national budget collected 12.3 trillion tenge in taxes. As The Times of Central Asia previously reported, the new Tax Code will also introduce a luxury tax on high-value goods such as yachts and cigars.

Kazakhstan Expects Record Car Sales

Kazakhstan's automobile market continues to grow, with sales of new cars on track to match or exceed last year’s record. In 2023, Kazakh motorists purchased over 198,000 new vehicles, and experts predict similar or higher figures for 2024. According to the Kazakhstan Automobile Union (KAO), 20,984 passenger cars and commercial vehicles were sold in November 2024, a 10.7% increase compared to November 2023. Over the first 11 months of 2024, Kazakh dealers sold 179,628 new cars, surpassing the 175,100 sold during the same period last year. Despite earlier concerns of a potential market slump, industry experts remain optimistic. KAO head Anar Makasheva had cautioned that the 2023 record represented “inorganic growth” driven by pent-up demand. However, Artur Miskaryan, general director of the Agency for Monitoring and Analysis of the Automobile Market (AMAAR), believes the market’s positive trend will continue. “Kazakhstan may well repeat or even surpass last year’s record for fleet renewal, potentially reaching 200,000 new car sales,” Miskaryan stated. He acknowledged some fluctuations, noting that in certain months, sales fell below 2023 levels but were offset by stronger performance in other periods. Kazakhstan’s domestic car manufacturers, based in Kostanai and Almaty, are also close to replicating last year’s success. In 2023, locally produced vehicles accounted for over 70% of the 198,000 new cars sold - approximately 148,000 units. Miskaryan estimates that domestic production will maintain a similar share in 2024. As previously reported by the The Times of Central Asia, stricter regulations for importing foreign cars into Kazakhstan were introduced on December 1, 2024​. However, experts anticipate that these changes will not significantly affect the market until spring 2025. Kazakhstan’s automobile sector continues to demonstrate resilience and robust growth, positioning itself for another record-breaking year in 2024.

Kazakhstan Launches New Online Marketplace

A new domestic online marketplace, Teez, has commenced operations in Karaganda, the central city of Kazakhstan’s Karaganda region. The platform, offering next-day delivery, has opened pick-up points in 24 cities nationwide. On November 29, Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, visited the marketplace's main warehouse. Teez co-founder Linar Khusnullin informed the minister that the platform currently operates 40 pick-up points and plans to expand this network to 127. The marketplace offers 50,000 product types, and its customer application has already been downloaded by 170,000 users. The company’s warehouse spans 25,000 square meters, but by 2030, it aims to expand to a 120,000-square-meter facility. Teez aspires to become Kazakhstan’s leading e-commerce platform. Shakkaliyev highlighted the rapid growth of e-commerce in Kazakhstan, noting a 20% increase in electronic trade volume from January to October 2024 compared to the same period in 2023. He emphasized that Karaganda, with its central location and developed infrastructure, has the potential to become a vital trade and logistics hub not just for Kazakhstan but for the entire Central Asian region. The Times of Central Asia reported that in 2023, the volume of e-commerce in Kazakhstan exceeded 2.2 trillion KZT ($4.8 billion), accounting for 13% of all retail trade, a 0.5% increase from the previous year. The country aims to raise its share of e-commerce to 20% by 2030.

World Bank Allocates $800 Million to Support Uzbekistan’s Market Economy Transition

The World Bank has allocated $800 million to accelerate Uzbekistan's transition to an inclusive and stable market economy. The government’s reform program, supported by the World Bank, aims to improve Uzbekistan’s business environment, increase agriculture, railways, and energy efficiency, improve public finance management, expand social services, and enhance readiness for environmental risks. Finance provided by the World Bank through highly concessional loans, is reported to offer the government low-cost, long-term repayment options "more favorable than those available in international financial markets." The financial package aims to achieve concrete results in the social protection system, combating gender-based violence, land security for farmers, business environment, public finance management, tackling climate change, water resource management, and environmental and climate assessment. It also includes reforming climate-sensitive investment in the railway and energy sectors. Uzbekistan has received $100 million from the World Bank in May to develop social protections. On 21 June, it was announced that Uzbekistan is the first country worldwide to receive payment from the World Bank for reducing carbon emissions through a policy crediting program and to date, has been awarded a $7.5 million grant for cutting 500,000 tons of carbon emissions.