Today at the meeting of the Government chaired by the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the draft law "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Improving Regulation of Entrepreneurial Activity" was considered.

Minister of National Economy T. Suleimenov reported that, taking into account the current policy of deregulation and business costs reduction, removal of administrative barriers and stimulation of entrepreneurship development, the bill was developed in the following areas:

• reform of state control and supervision activities;
• reform of permits issued by monopolists and subjects of the quasi-public sector;
• development of the institute of self-regulation;
• identification and exclusion of norms that hinder competition;
• frontal decrease in business costs;
• improving the mechanisms for identifying and suppressing price and tariff collusion;
• development of business support measures;
• improvement of Kazakhstan's position in the Doing Business ranking.

In total, the bill introduces about 1000 amendments to 13 codes and 103 laws.

One of the main innovations of the bill is the introduction of preventive control. Such a reform should radically change the mentality and behavior of the inspection bodies to the policy of ‘prevention and control’ of the offense in place of the current ‘detection and punishment’ policy.

Based on the results of the work, it is proposed to exclude a number of spheres of control and supervision by legislation in connection with duplication and lack of efficiency, eliminate duplicate and non-risk spheres to the state and the consumer, and reduce requirements for verification of business entities.

As a result of implementing measures, the total number of inspections will be reduced by 30% by 2018, which is no more than 70 thousand, and by 2020 - by another 10%.

One of the most significant loads on business is a large number of information tools. According to the results of the inventory, more than 1 600 information requirements for business have been identified, many of which are duplicated with control functions or with forms of state statistical reporting. With a view to reforming information tools, it is planned to reduce their number by 30% and consolidate the final list.

Also, in-depth work is being carried out to optimize and simplify the licensing system for business. In 2016, a reform was carried out on a 50% reduction in permits, resulting in the number of permits from 708 brought to 316. To continue this work, it is proposed to make appropriate changes and additions to the law "On Permits and Notifications."

With a purpose of the further development of the self-regulation institution, introduced in 2016, amendments are proposed for additional incentive measures. To date, voluntary self-regulation is practiced in the areas of bookmaking, environmental auditing, tax advice, fire safety. The introduction of mandatory self-regulation in the areas of valuation activities and environmental auditing activities has already been worked out and amendments are included in the draft laws for the current year. In addition, this issue is being studied in 6 potential areas (appraisal, notarial, advocacy, audit activities, environmental auditing activities and non-departmental complex expertise of construction projects).

In addition, the bill contains a block of amendments aimed at frontal reduction of business costs. The most cardinal ones are connected with obtaining technical conditions for connecting natural monopoly entities to engineering networks, reducing the rates of certain taxes and fees, and observing the requirements of environmental legislation. In addition, the reduction of costs will affect such areas as technical regulation, construction, public procurement. In general, it was noted that work aimed at reducing business costs will continue on a systematic basis.

Also, in order to create a favorable competitive environment, the draft law proposes a number of amendments aimed at eliminating the norms that impede competition identified in the framework of the audited legislation.

In addition, as part of the continuation of the systematic work to improve the business climate in the country and the position of Kazakhstan in the Doing Business rating of the World Bank, the draft law provides for a number of reforms on seven indicators of the Doing Business ranking out of ten. Among them: "Opening of enterprises", "Contract execution", "Construction permit", "Protection of minority investors", "Resolving insolvency", "Getting credit", "Registration of property".

The Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev instructed the Ministry of National Economy together with the Prime Minister's Office to coordinate the draft law with the Administration of the President and submit it to the Majilis of the Parliament by the end of October this year.

Also Bakytzhan Sagintayev noted that within the framework of the program "Digital Kazakhstan" there are a number of activities aimed at supporting small and medium businesses. In this regard, Deputy Prime Minister Askar Zhumagaliyev and the Ministry of National Economy and the NCE together with the holding company Baiterek were instructed to start the digital platform for small and medium business in the single window mode by the end of November.

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