RK MFA proposes insuring foreign investors against currency risks
from open sources
The Ministry of Foreign Affairs of Kazakhstan prepared a number of motions for improving the investment climate in Kazakhstan. The respective bill is currently being considered by the Ministry of National Economy, Kazpravda.kz correspondent quotes the Foreign Minister of Kazakhstan, Beibut Atamkulov, as saying at the Government meeting.
"Investors have repeatedly raised five systemic problems. The first one is the rule of law. We need to ensure stability of the legislation for investors, as provided for by the Law of the Republic of Kazakhstan "On Foreign Investments " that was in effect until 2003," Atamkulov said.
The second problem, he went on to say, is volatility of the tenge.
“It is proposed to introduce a mechanism for insuring currency risks. There is also a problem with connection to the infrastructure and allocation of land plots,” the Minister noted.
He proposed to work out the following areas: reimbursement of expenses for construction and installation works; connection to the infrastructure and providing a preferential tariff in exchange for transferring the constructed infrastructure to the books of the monopolist; optimization and automation of the land allocation.
In addition, he noted that investors are concerned about decriminalization of tax offenses.
"It is proposed to establish clear criteria for criminal prosecution. We believe that when calculating the amount of tax offense, it is necessary to base on the ratio of percentage of the tax offense amount to the total investment income. This will ensure fairness and accuracy in calculating the tax debt," he elaborated.
Also, according to Atamkulov, the migration issue remains relevant.
"It is necessary to introduce the possibility of paying a fine online for breaking immigration laws without a court decision, or through a special terminal on the spot. This issue has not yet been resolved. We have prepared a corresponding concept and bill on all the above points, and have already directed it to the Ministry of National Economy," - Atamkulov concluded.