Kazakhstan Moves to Regulate Chinese Medicine Clinics

Amanzhol Altai, a deputy of the Mazhilis, has submitted a formal request to the Ministry of Health proposing tighter oversight of centers operating under labels such as “Eastern medicine,” “Chinese medicine,” “acupuncture,” and “manual therapy.” The central proposal is the creation of an open digital register of such institutions, particularly those involving foreign specialists. According to the deputy, he regularly receives complaints from citizens about the provision of medical services without proper licenses or verified qualifications, the performance of invasive procedures in violation of sanitary standards, the use of unregistered medicines, and misleading advertising that promises to “cure” serious illnesses. Altai also said that some centers operate for only short periods before changing their names or addresses in order to evade oversight. Of particular concern, he noted, are cases in which foreign nationals without confirmed medical education present themselves as doctors. “We are talking about citizens of the People's Republic of China who present themselves as qualified specialists, see patients for several months, and then close the center and leave the country,” the deputy said. In his view, such practices pose a direct threat to patients’ life and health and undermine trust in the healthcare system. At the same time, some services offered under the branding of “traditional Chinese medicine” are classified as medical activities under Kazakh law and therefore require licensing, certified qualifications, and compliance with established regulatory standards. In this context, Altai proposes not only establishing a digital register of these organizations but also issuing official legal clarifications on the status of such services, strengthening interagency control over the circulation of unregistered medicines, and tightening oversight of online advertising for these centers. The Times of Central Asia previously reported on the risks of drug shortages in Kazakhstan amid proposed changes to tax policy.

Tax Reform in Kazakhstan Could Lead to Drug Shortages

Kazakhstan’s new tax policy has triggered concerns over potential disruptions in the supply of medicines and medical devices. Industry leaders warn that complexities in administering value-added tax (VAT), along with legal inconsistencies in the updated Tax Code, could destabilize the country's pharmaceutical market. Ruslan Sultanov, chairman of Kazakhstan’s Association of Pharmaceutical and Medical Product Manufacturers, raised concerns during an online meeting with government and business representatives. He said the changes have already led distributors to refuse purchases of several essential medicines. Last year, Kazakhstan adopted a new Tax Code that increased the VAT rate from 12% to 16%. It also introduced zero and reduced VAT rates for specific sectors. During parliamentary discussions, lawmakers proposed exempting essential medicines from VAT and reducing the tax burden on medical institutions.  Ultimately, authorities agreed to fully exempt more than 3,000 medicines purchased under the Guaranteed Volume of Free Medical Care (GVFMC) and Compulsory Social Health Insurance (CSHI) programs from VAT. However, Sultanov said these exemptions have not been sufficient to stabilize the market. According to him, the pharmaceutical sector is facing unprecedented administrative pressure. One of the most critical problems is the inconsistent taxation of medical devices procured under the GVFMC and CSHI frameworks. While medical services are completely exempt from VAT, a 5% VAT rate is still applied to medical devices. “As a result, hospitals are in a situation where they cannot offset the tax when purchasing medical equipment. After factoring in administrative costs, companies are losing 5-7%. This affects both domestic and foreign manufacturers,” Sultanov explained. The lack of clear guidance from government agencies has further complicated matters. Socially significant medicines, which were previously taxed at 5%, are now VAT-exempt but ambiguity around the new rules has led to widespread reluctance among distributors to place orders. “The confusion has created a bottleneck. For example, paracetamol is physically available in warehouses, but its movement is being blocked. Without timely clarification, we will face a shortage,” Sultanov warned. To resolve the issue, he proposed eliminating the fragmented VAT structure currently applied to the pharmaceutical sector. Sultanov also highlighted the risks associated with the under-declaration of customs values for imported drugs. He stated that customs officials continue to rely on outdated price data from a year ago, ignoring current market rates. This, combined with delays in approving maximum retail prices by the Ministry of Health, threatens the viability of long-term drug supply contracts signed before January 2026, particularly those involving medicines not produced domestically. His concerns are echoed by pharmacy industry leaders. Talgat Omarov, Chairman of the Kazakhstan Association of Independent Pharmacies, confirmed that the organization has submitted formal appeals to President Kassym-Jomart Tokayev and Senate leadership, calling for the complete exemption of the pharmaceutical sector from VAT, not just medications supplied under state programs. “Every day, customers come into pharmacies, see new price tags, complain, and leave. We hear this negativity constantly. Medicines are socially significant goods, and applying additional taxes in the current climate is dangerous,” Omarov said. To cope with increased taxes...