All the Government’s efforts are reduced to naught when certain state bodies simply neglect the law. The law enforcement bodies are besieging the business with inspections and taxes. That’s what the businessmen write anonymously: no sooner the tax bodies finish the inspection and pass their verdict when financial police step in with their pre-investigation checks, paralyzing the whole activity.

The businessmen are helpless before the enforcement officers, and in his state-of-the-nation Address the President bade to put an end to it, to impose a stiff public and parliamentary control over the enforcement structures’ actions, particularly on local level and to reform them.

Acting upon it the President Administration launched on the www.akorda.kz site a special internet-blog every businessman can go to with a complaint about unlawful actions or inspections, writing the name of the inspecting officer and stating the facts for the Administration, Prosecutor-general’s and Nur Otan party to look into.

In all the six months since the blog was launched 320 complaints have been received: 49 about the finance ministry’s officers, 47 - RK Agency for fighting economic crime and corruption. 37 businessmen complained about the prosecutor-general’s actions, 17- about MIA, 15 – Almaty oblast administration, 14-East-Kazakhstan oblast administration, 11 – NSC officers, 8 –RK Agency for the land resources management.

That’s what the President said about the relations between the businessmen and the state bodies: “It is as if the businessmen and the enforcement structures are on the opposite sides of the barricades. And it is when we have one task – a thriving Kazakhstan, we are working for one country, one economy. If a business produces goods and gives jobs we ought to support it, instead of demonstrating power”.

The enforcement system’s reform will ease the work of law-abiding business too. 17 August this year the President signed a decree on measures for improvements in law enforcement and judicial systems. A special state commission was set up that analyzed the enforcement structures’ work, revealed the problem spots and shortcomings and studied the world experience in this area.

The reorganization will go on in seven main directions, among which is clear discrimination of competences, relieving the enforcement bodies of irrelevant functions, optimization of central apparatus bodies and legislative basis improvement.

The new law will stimulate development of enterprise, shielding the business from the enforcement bodies’ pressure and raid and strengthening the business’ credibility in the state and Kazakhstan’s investment attraction.

But that does not mean one can do business breaking laws. The business in its turn should seek diversification and export opportunities – the new standards to go by.

To attain the set goals the state bodies are ready to further refine the legal framework and the administrative system. The Government is tasked to develop enterprise. The number of people currently involved in small and average business is over 1,8mn or a quarter of employable population who produce a third of GDP. It is this business that chiefly gives jobs, forms middle class and ultimately ensures the national wellbeing and prosperity.

Since 2007 it took 276bn tenge to support small and average business alone. Last year the corporate income tax was decreased by a third to make 20%, VAT rate dropped to 12%. Regressive rate scale was replaced by a single rate the size of 11%, and investing businesses enjoy tax concessions. In 2008-2009 a moratorium was imposed on inspections into small and average business.

Within the “Roadmap for business-2020” program the state will only subsidize remuneration rates on earlier issued problem credit loans for rehabilitation. A business may apply for the rehabilitation only during this year.

Within the anti-crisis measures nearly USD 19bn was channeled to support different sectors, including banking, construction and other branches. During the preceding legalization action Kazakhstanis were enabled to legalize the property the sum of over USD 5bn. Another positive point is: under a renewed Tax code the business economizes 500bn tenge annually.

The President believes the “Roadmap for business-2020” will stimulate enterprise development in Kazakhstan, the banks in their turn should be of service to entrepreneurs, he bids, given that the state supported them in the hard times.

The state pledges support to the economically viable businesses, working in priority branches of industrial development only, not in primary sectors.

Support to the home business will take the form of state order. In this year 2trn tenge is to be channeled for state procurements, Samruk-Kazyna NWF will make them the sum of 2,6trn tenge. The lion share of these means will go to Kazakhstan businesses for the fulfilled state order.

Mihail Kozachkov