(18 February 2026 | Source: response of the Prime Minister of the Republic of Kazakhstan to a request from deputies of the Senate of Parliament)
The Prime Minister of Kazakhstan Olzhas Bektenov sent a response to a request from Senate deputies regarding the expansion of powers of rural districts and the redistribution of tax revenues to Level IV budgets. The document reflects the government's position on the senators' key proposals, some of which were supported, while others were deemed premature or inexpedient.
REPRESENTATIVE BODIES AT THE RURAL LEVEL
The proposal to create maslikhats at the level of rural districts has not been supported at this stage. The government noted that the current model already provides for citizen participation through maslikhat deputies elected in single-mandate districts, as well as through local community gatherings and meetings.
The issue was previously studied, but the decision was made to maintain the existing mechanisms for interaction between the local community and the state.
TRANSFER OF CIT AND VAT: GOVERNMENT'S POSITION
The senators proposed considering the possibility of transferring part of the corporate income tax (CIT) and value added tax (VAT) from small and medium-sized businesses to the Level IV budgets.
The response states that transferring part of the CIT could lead to a significant excess of revenue over the actual expenditure needs of akim offices and would require expanding their functions. Furthermore, the insufficient institutional and personnel readiness of rural administrations to manage such volumes of funds was noted.
The transfer of VAT was deemed to entail fiscal risks, including due to the tax refund mechanism, which could lead to a negative balance in certain regions.
The government also did not support the idea of mandatory registration of structural subdivisions of companies at their actual place of business in rural areas, citing the risk of increasing the administrative burden on businesses.
FUNCTIONS OF RURAL AKIMS: REVIEW OF POWERS
As part of a comprehensive analysis of legislation, the provisions of 17 codes and more than 100 laws were studied. As a result, approximately 170 functions assigned to the akims of rural districts were identified.
It has been proposed to remove 11 functions deemed inappropriate for this level of administration. Among them are: assisting in the employment of persons released from penal institutions, handling certain administrative offences, and arranging transportation for bedridden patients.
The corresponding amendments have been included in a draft law being considered in the Majilis.
REVENUE BASE OF LEVEL IV
According to government data, in 2025, 442.3 billion tenge was actually received in rural-level budgets, of which own revenues amounted to 147 billion tenge, or 33.2% of the total volume.
From 2026, the tax on the extraction of minerals for common types, groundwater, and medicinal muds has been transferred to the budgets of rural districts.
Additionally, as part of the working group's efforts, the transfer of up to 50% of the property tax for legal entities (the share is determined by the decision of the district maslikhat), as well as the full amount of the licence fee for the right to engage in certain types of activities, is being worked out. The amendments have been agreed upon with interested state bodies, and the government's conclusion has been sent for approval to the Presidential Administration.
According to preliminary estimates, if the changes are adopted, additional revenues to the budgets of rural districts could amount to approximately 240 billion tenge.
It was separately noted that amendments to the draft law under consideration propose transferring revenues from environmental fines to the budgets of rural districts.
It was also reported that, within the framework of the ‘AuyL Amanaty’ project, 450 billion tenge has been allocated in the republican budget for 2026–2028.