Kazakhstan Audit Exposes Tax Inefficiencies and Tobacco Contraband
A state audit in Kazakhstan has revealed concerning trends in tax administration and contraband tobacco products. The audit found that while untimely VAT refunds reached 420 billion tenge in 2024, potential penalties amounted to nearly 5 billion tenge. Meanwhile, Kazakhstan lags behind other EAEU countries in marking goods, leading to an increase in contraband tobacco products.
The audit also highlighted inefficiencies in the risk management system. Only 46 billion tenge was additionally assessed from over 900 enterprises selected by the system. Furthermore, monitoring of 354 large taxpayers was effective only for subsoil users, resulting in 643 million tenge. Customs inspections based on risk management systems lagged behind unscheduled ones. Despite increased tax inspections, overall efficiency decreased.
In the clothing sector, six major importers from Turkey posed a risk of counterfeit goods. They imported goods worth $145 million with 104 unregistered certificates. Only 46 billion tenge was additionally assessed due to risk management systems, with 70% of additional assessments coming from comprehensive inspections.
The audit has identified areas for improvement in Kazakhstan's tax administration and contraband tobacco control. Responsibilities for preventing tobacco smuggling lie with various authorities, including the Financial Monitoring Agency, customs, the Interior Ministry, and the Ministry of Finance. The audit's findings underscore the need for enhanced cooperation and targeted measures to address these challenges.
