The measure will affect manufacturers of automotive and agricultural machinery parts
The Ministry of Industry and Infrastructure Development passed an order in accordance with the order of Article 394, paragraph 38 of the Code of the Republic of Kazakhstan on December 25, 2017, “On taxes and other mandatory payments in the budget (tax law)”. According to the Ministry’s website, the document provides for exemption of value-added tax on sales of parts and components of vehicles and agricultural machinery for manufacturers of parts and components in Kazakhstan.
“The approval of the order will ensure the possibility for the government to provide effective support in the production of vehicle and agricultural machinery parts, in order to increase investment attractiveness, reduce the cost of individual parts, and develop localization and deepen the technical operation of machinery in the automotive and agricultural sectors. industry”.
It is worth noting that at the end of March, the localization center began work in Kostanay, where it will produce more than 1,200 kinds of parts for agricultural machinery and JAC and Chevrolet cars. In early April, the construction of a plant for the production of KAMA and Viatti tires began in Karaganda. The plant will increase the localization level of automobile production in the Republic of Kazakhstan and ensure the substitution of imported tires. At the same time, it plans to export 40% of the products. The project is scheduled to be completed by the end of 2022. In Almaty, construction for the production of bumpers and plastic parts for Kazakhstan’s modern cross-border is underway.
In addition, a factory is being built in Kostanay to produce cast iron. The first phase of construction is scheduled to be completed in October 2021. It will produce axle boxes, cylinder blocks and engine cylinder heads for K5 series KAMAZ trucks. 95% of the products will be exported.
Plans to produce tires in Kazakhstan
PJSC TATNEFT and JSC Allur Group signed the roadmap for the project