How Kazakhstan wants to change approaches to business and citizen support: expert opinion

Tengrinews.kz — Kazakhstan is facing large-scale domestic reforms that will affect, among other areas, tax policy, business support and social assistance. Tengrinews.kz spoke with Sanat Kushkumbayev, Chief Research Fellow at the Kazakhstan Institute for Strategic Studies (KazISS) under the President of Kazakhstan, about the tasks facing the country following the President’s Address to the people of Kazakhstan.
According to the expert, the objectives outlined by Kassym-Jomart Tokayev in his Address are interconnected: the stability of the state depends not only on economic growth, but also on the effectiveness of public institutions, citizens’ quality of life and the country’s ability to withstand external challenges.
“Businesses simply need to be left alone”
In his speech, the President outlined a key initiative aimed at developing entrepreneurship in the country: he proposed discussing the introduction of a new three-year moratorium on inspections of micro and small businesses starting January 1, 2027.
“An analysis of business activity shows that businesses simply need to be left alone,” Tokayev said.
The expert believes the moratorium could indeed become a fundamental step. In his view, business freedom begins when entrepreneurs no longer have to constantly expect an inspector to show up.

“But it is important that these three years are used not simply as a pause, but as a period for a full restructuring of the regulatory and supervisory system. A ban on inspections itself reduces administrative pressure. However, once the moratorium ends, previous practices may return if the overall approach is not changed,” Kushkumbayev said.

In his Address, the President cited the following figures: in the first half of the year, the number of violations among individual entrepreneurs fell by 34 percent, while the amount of fines increased by almost 11 percent and the number of unscheduled inspections rose dozens of times. Therefore, the expert believes the issue is not so much the number of inspections as the rules under which they are ordered.

“A logical step would be to move from mass inspections to risk-based management. If an entrepreneur is operating, paying taxes and complying with the law, there is no need to constantly interfere in their activities. Oversight should focus on areas where there are genuine risks to public health, the environment, economic security, product quality, and the rights of workers and consumers,” the expert said.

Another problem, in his view, is the duplication of requirements by government agencies. When different authorities request the same documents, entrepreneurs are forced to spend time dealing with bureaucratic procedures instead of developing their businesses.
At the same time, Kushkumbayev stresses that the moratorium should not exempt unscrupulous companies from responsibility. The goal is to make oversight more selective and justified, while making relations between the state and business more predictable.
Higher taxes for the wealthy: what needs to be considered
Another area of economic reform is the discussion of a higher tax rate for holders of large fortunes. The expert believes this approach would require the wealthiest citizens to make a larger contribution to the budget, but its practical implementation will require clear rules for determining the tax base.
Kushkumbayev noted that progressive taxation may be viewed by society as a fair solution if it is applied consistently and without selectivity.

“The most sensitive situation is when the main burden falls on people with middle or low incomes, while owners of major assets retain their previous advantages. Fairness becomes convincing when it is reflected not only in statements, but also in how the overall tax burden is distributed,” the expert said.

At the same time, he said, a higher rate should not become a punishment for earning a high income or owning property. Legally acquired assets remain an important part of a market economy, and the new system should specifically target large fortunes rather than the upper segment of the middle class.
The expert notes that the accumulation of significant wealth depends not only on the efforts of its owner, but also on conditions provided by the state, including infrastructure, property protection, the financial system, workforce training and social stability. Therefore, the question of higher tax contributions from wealthy citizens is also linked to how the costs of social development are distributed.
Kushkumbayev believes that implementing such an approach will require defining exactly which types of income and assets will be subject to the higher rate. Mechanisms will also be needed to prevent artificial splitting and concealment of assets.
Social assistance: how to prevent dependence on benefits
Another important point in the Address was a review of approaches to social support. The expert stresses that targeted assistance does not mean the state should stop supporting people who are objectively unable to provide for themselves.

“A benefit can keep a person from falling, but it should not become a ceiling they cannot rise above,” Kushkumbayev said.

In his view, when determining support measures, it is important to distinguish between situations in which a person needs permanent assistance and cases in which the state can create conditions for a return to independent living. Elderly citizens, people with disabilities, children and families facing difficult life circumstances should be reliably protected. For working-age citizens, jobs, vocational training, accessible transport, kindergartens and opportunities to start their own businesses may be particularly important, the expert noted.
For this reason, Kushkumbayev says the effectiveness of social policy should not be measured solely by the number of benefit recipients. More important is understanding how many families have been able to increase their income, obtain a profession, find employment and move away from permanent dependence on payments thanks to state support.
“The ultimate goal is not to reduce the number of recipients at any cost, but to increase the number of people who no longer need assistance because they have gained opportunities to support themselves,” the expert said.
Infrastructure and technology as factors of economic independence
Domestic reforms are also linked to Kazakhstan’s ability to maintain independence in international relations, Kushkumbayev noted. He explained that energy, transport corridors, industry and digital infrastructure influence not only economic growth, but also the country’s dependence on external suppliers, routes and technologies.

“Today, sovereignty is measured not only by borders or the military in the traditional sense. What also matters is whether a country can provide itself with energy, possess the necessary technologies and maintain reliable transport routes,” Kushkumbayev said.

According to him, Kazakhstan’s geographical position between major economic and political centers of Eurasia, as well as its lack of direct access to the world’s oceans, make alternative transport routes and diversification of external ties particularly important.
“If an economy depends on a single export commodity, one transport route or one supplier of critical technologies, the room for foreign policy maneuver inevitably narrows. That is why the Middle Corridor, modernization of railways, the Aktau and Kuryk ports, and the development of energy capacity have significance beyond commerce. They create alternatives and reduce Kazakhstan’s vulnerability to external shocks,” the expert noted.
Regarding energy, Kushkumbayev stressed that reliable electricity supply is essential for industry, transport, data centers and new cities.
“That is why the President’s objective of ensuring a sustainable energy surplus by 2029 is directly linked to the broader issue of state resilience,” the expert said.
Kushkumbayev believes the domestic modernization outlined by the President is not merely a development program. It is also about preserving and expanding Kazakhstan’s freedom of foreign policy choice, which is directly linked to the country’s sovereignty and independence.