Politics • 26 October, 2018

Bakytzhan Sagintayev discusses new development opportunities and promising areas taking into account implementation of Address with businessmen of Almaty region

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As part of his working trip to the Almaty region, Prime Minister Bakytzhan Sagintayev held a meeting with the business community of the region on the implementation of the President’s Address “Growing Welfare of Kazakh Citizens: Increase in Income and Quality of Life.”

The issues of subsidizing small and medium-sized businesses, conducting a tax amnesty, developing the economy of simple things, as well as measures of state support for export-oriented enterprises, especially in the manufacturing industry, were discussed at the meeting.

In the Address of the President to the people of Kazakhstan, it is instructed to begin the tax amnesty for small and medium businesses from February 1, 2019. Now 66,933 subjects of medium and small business have a debt of 152.8 billion tenge, which was formed before January 1, 2018, and has not been repaid as of September 1, 2018. The Government, pursuant to the instructions of the Head of State, will carry out appropriate work on writing off 59.5 billion tenge of penalties and 13 billion tenge of fines (72.5 billion tenge of penalties + fines) subject to repayment of the principal debt of 80.3 billion tenge until December 31, 2019.

Prime Minister Bakytzhan Sagintayev noted that the President’s Address pays special attention to the support of entrepreneurs. The key business support tool is the Government Business Support and Development Program “Business Road Map – 2020.” Given the effectiveness of the program, the Head of State decided to extend it until 2025, with an additional allocation of 30 billion tenge annually.

Within the framework of the program, support was provided to more than 19,000 business entities in the amount of 406 billion tenge. In the Almaty region financial support measures for more than 1,200 entrepreneurs worth 43 billion tenge were provided. In addition, within the framework of the Program in the Almaty region, more than 37,000 entrepreneurs have been trained and received services.

The implementation of support measures allowed the participants of the Business Road Map -2020 program in the Almaty region to produce for 89 billion tenge, more than 23,000 jobs were created and saved and 89 billion tenge of taxes were paid.

In order to develop the manufacturing industry and non-primary exports, in the framework of the President’s Address, an additional 500 billion tenge will be allocated during 2019–2021 and at least 600 billion tenge for lending to industrial projects.

Sagintayev noted that along with the implementation of state support for entrepreneurship on a systematic basis, work is being done to reduce administrative barriers and improve legislation. Speaking about the tax amnesty for small and medium-sized businesses, the Prime Minister called on business, in turn, to approach the strengthening of the competitive component of the economy more conscientiously.

The Deputy Chairman of the Board of Atameken National Chamber of Entrepreneurs Eldar Zhumagaziev reported on the implementation of the Head of State’s Address in terms of forming a stable source of business growth, encouraging private investment and promoting market freedom, further implementing the Business Road Map State Program until 2025. He informed that the Almaty region is leading in the implementation of the Business Road Map-2020. Almost 53% in the structure of the local budget is the share of small and medium-sized business.

During the meeting, representatives of the business community of the region also shared their opinions. General Director of Tekeli Mining and Processing Plant LLP B. Shalbayev spoke about the introduction of innovative technologies in the manufacturing sector enterprise. According to the new technology, the company plans to process any unprepared iron-containing material, which automatically reduces the cost of the finished product. The new production, he said, will give impetus to the development of metallurgy in the region and will reveal its economic potential.

Chairman of the Board of Almatinskiye Kraski LLP R. Salykova shared her business development experience that was achieved thanks to government support measures in the framework of the Business Road Map-2020, and also supported the President’s initiative to raise the minimum wage.

The General Director of Abdi Ibrahim Global Farm LLP Z. Hasanov, in turn, announced the company's intention to participate in obtaining state support tools for the Employment Roadmap program.

“In the current Address, the special enthusiasm of the business community in the region was caused by the extension of the Business Road Map program until 2025 with the release of additional funding. An annual investment of 30 billion tenge on the development of domestic business, of course, will give a multiplicative socio-economic effect. This is a new challenge for us. We are one of those enterprises that plans to participate in it,” Hasanov said.

According to the Chairman of Zharkent Starch Plant LLP Z. Kuziyev, his company increased the volume of corn processing from 10 thousand to 120 thousand tons per year comprehensively using the state support tools.

“Currently, the deep processing of corn grain gives 27 types of products in the enterprise. Starch, molasses, glucose-fructose syrup, etc. are in high demand in foreign markets. First of all, we meet the needs of our own market, the remaining products are exported to China and Central Asian countries,” said Kuziyev.

All this, he said, was made possible thanks to a wide range of financial instruments of regional development institutions, whose loan portfolio currently exceeds 4 billion tenge.

President of the Alina Group of Companies E. Balphanbayev spoke about the development of the construction business. CEO of Kagazy Recycling LLP V. Gorobtsova in her speech touched upon the development prospects of the processing industry in the region. A comment on the issues raised was made by the Minister for Investments and Development Zh. Kassymbek.

Chairman of the Uygur District Water Users Association A. Imirov, in turn, focused on the development of domestic tourism.

“The development of tourism in our region is reaching a new level and is rapidly integrating into the global tourism industry. This is the result of the country's business support measures. One example is the recent visit of the Head of State to the shores of Lake Alakol, where key issues of further development of the tourist infrastructure of the region were discussed,” Imirov said, noting that the successful implementation of the Head of State’s instructions will increase the tourism potential of not only Alakol , but also other tourist objects of the region.

It should be noted that representatives of a number of large regional enterprises announced a decision to raise wages to their employees as a sign of support for the Address of the President.

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