The founder of several private kindergartens, Oksana Ushkevich, believes that an increase in the value added tax (VAT) rate could affect private education due to the rising cost of rent, utilities and food.
According to Bes.media, she suggests reviewing budget expenditure and introducing a single tax instead of increasing VAT. The results of a survey conducted by the businesswoman among directors of 100 kindergartens across the country showed that many are planning to raise the cost of their services.
"Apart from paying VAT, we are businesses that depend on utilities: electricity, heating, water, waste collection. All of these services will automatically become 20% more expensive. The relationship isn't direct, but exponential: utility bills will go up, and naturally, rent will increase because it is also subject to VAT," the statement reads.
At the same time, Ushkevich believes that food procurement prices will rise by an average of 31-38% depending on the region.
"When the rules are the same, people are willing to pay. Right now, manufacturers are shutting down: every third enterprise in the regions ceased operations in 2023. Cheap imports and smuggling are finishing us off," concluded Oksana Ushkevich.
For context, in January, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin presented new tax reforms at an expanded government meeting, which include lowering the VAT threshold to 15 million tenge. He outlined the government's plans to increase this rate. It was reported that ministers would discuss the amounts with members of parliament.