MAY 28 2014 (The Conway Bulletin) – Kazakhstan’s parliament passed the first reading of a bill that will give a tax amnesty for people willing to repatriate cash held in offshore accounts.
The amnesty is designed to boost the size of the legal economy.
Ardak Tengebayev, deputy finance minister, said the plan would bring much needed cash into the Kazakh economy.
“We expect a turnover of 2 trillion tenge ($11b) and we hope that this sum will be reintroduced into the country’s economy,” he said
A similar amnesty in 2006-07 pulled in assets of $7b.
Not everybody, though, thought the amnesty was a good idea. Viktor Yambayev, chief of the Almaty Association of
Entrepreneurs, said the plan was designed to help only the country’s rich.
“This amnesty doesn’t affect the majority of the population. Instead, it benefits government employees, monopolist companies, extractive industries,” he told a Bulletin correspondent.
An amnesty may draw in some, much needed, cash into the Kazakh economy but another problem, the divide between the rich and poor, is intensifying.
ENDS
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(News report from Issue No. 187, published on JUNE 4 2014)