BAKU, Azerbaijan, August 11. The 24th meeting
of the Project Office for the implementation of the Tax Code,
chaired by Deputy Prime Minister and Minister of National Economy
of Kazakhstan Serik Zhumangarin, reviewed VAT application in the
healthcare sector and changes to tax rates for subsoil users.


This was reflected in the statement, published by the official
information resource of the Prime Minister of the Republic of
Kazakhstan.


"The new Tax Code provides for a gradual change in the VAT rate
for certain healthcare services. Medical services and medications
provided under the guaranteed volume of free medical care (GVFMC)
and compulsory social health insurance (OSMS) are exempt from VAT.
This includes over 3,000 medications," the statement says.


VAT is also not applied to medical services related to the
treatment, diagnosis, prevention and rehabilitation of rare and
socially significant diseases. In addition, imports of
pharmaceutical substances used for the production of medicines
within the GVFMC and CSHI systems are exempt from the tax. A
reduced VAT rate has been introduced for wholesale and retail sales
of medicines and medical devices: it is set at 5% from January 2026
and will increase to 10% from January 1, 2027.


During the meeting, healthcare industry representatives raised
the issue of introducing a unified VAT rate for medicines and
medical devices. The National Chamber of Entrepreneurs "Atameken"
proposed setting a single VAT rate of 5% for all medicines and
medical devices, while exempting medical services from VAT.


Participants also discussed the impact of existing tax
mechanisms on the cost of medical services, medicines and medical
devices. Following the discussion, it was agreed to conduct an
additional analysis of the potential consequences of changing VAT
rates, taking into account the impact on the budget, the healthcare
sector and access to medical care and medicines.







Another issue discussed at the meeting was Article 778 of the
Tax Code, which provides for the introduction of new mineral
extraction tax rates from January 1, 2027, as part of a tax
reform.


Kazakhstan’s Vice Minister of Energy Kaiyrkhan Tutkyshbayev said
that the tax reform was initially planned to be synchronized with
the launch of common markets for oil and petroleum products within
the Eurasian Economic Union (EAEU).


The reform provides for the consolidation of the existing tax
burden, including rent tax, mineral extraction tax and export
customs duty. At the same time, the export customs duty on oil
approved by the Ministry of Trade for exports remains in place.


A representative of the State Revenue Committee explained that
the tax rates stipulated by the Tax Code were calculated taking
into account the abolition of the rent tax and export customs duty.
According to him, simultaneous application of the export customs
duty is not envisaged under the methodology. Participants noted the
need to align the provisions of the Tax Code with the updated
timeline for the launch of the EAEU common market for oil and
petroleum products following the postponement of its
implementation.