Government adopts programme against shadow economy

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11:37 27.08.2004
text: "Kazakhstan Today"
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The government has reviewed a draft programme of basic directions of the economic policies and organisational measures to reduce the shadow economy in Kazakhstan for 2004-2010, KZ-today has learned from a report by the press service of the head of government.

Before the discussion the prime minister Danial Akhmetov chairing the session observed that until the present moment there had not been any systematic and efficient measures developed in the world against the shadow economy. However separate measures to simplify administrative procedures, create specialised financial structures, reduce the tax burden, and a number of other measures helped to lower the shadow economy in some states, the head of government observed. At the same time he estimated opinions of specialists about the volumes of the shadow economy in the country - around 30% - sceptically.

Speaking at the session Kairat Kelimbetov, minister of economy and budget planning, said that the project developers defined main reasons for the diffusion of the shadow economy and proposed a number of measures to reduce the damage from that phenomenon. In particular, the experts mentioned a low material and technical basis of ventures, a low competitiveness of commodities in conditions of a growth of the demand for infringing goods, a difficulty to obtain credits for the medium and small business, an insufficient competence of state officials and their authority abuses when it is impossible to challenge their actions, problems of registration and statistics, a growth of the illegal export and other.

At the same time the premier D. Akhmetov stressed that a reduction of the tax burden not always helps to reduce the shadow economy. As an example the head o government pointed to Kazakhstan, where the level of taxes is significantly lower, than in the CIS countries and other world states, but the situation with the shadow economy doesn't change. The head of government believes that it is partially related with the low labour productivity.

Summing up the results of the session, D. Akhmetov said that he was satisfied with the results of the work on the draft programme and reminded again that the problem of reducing the shadow economy volume required "a comprehensive and scrupulous approach." The premier also observed that he was pleased by the fact that "the draft includes legislative, administrative and juridical measures, which economically and financially motivate entrepreneurs to come out of "shadows".

According to the results of the session it was ordered to the Ministry of Economy and Budget Planning to prepare a final version of the draft and to present it for the government consideration in a one week term.