Alikhan Smailov: Automation of state controls prevents unwarranted business inspections

The progress of introducing from scratch regulation of entrepreneurial activity was considered at the Government session chaired by the Prime Minister of the Republic of Kazakhstan, Alikhan Smailov. 

Minister of National Economy Alibek Kuantyrov reported that so far all 44 areas of regulation have been considered, 2,823 legal acts have been analyzed. As a result 10,108 requirements for businesses that do not meet the conditions of the new regulatory policy of the state were identified. In this regard, since last year, active work has been underway to repeal them as part of the bylaws. A similar process is underway in terms of legislative changes.

At the same time, following an analysis of the regulatory areas, the Smart Data Ukimet platform has launched a Registry of Mandatory Business Requirements, which will allow for a review of regulatory acts on an ongoing basis. In this case, the method of "regulatory guillotine" will be applied to the requirements that have a negative impact on the business environment by exempting entrepreneurs from administrative responsibility for violating them.

The Minister also said that 35 areas of state control were automated in 2022 and 16 information systems of state bodies were integrated into Smart Data Ukimet. Automation of the remaining 35 areas of control is to be completed in 2023.

In turn, the chairman of the Presidium of Atameken NCE Raimbek Batalov said that more than 100 experts from the business community were involved in the analysis of the areas of business regulation.

The Prime Minister stressed that in order to reduce the administrative burden on business a large-scale analytical work on all regulatory acts was carried out.

"As a result, a register of mandatory requirements has been formed. It will be periodically reviewed, and the National Chamber Atameken has a key role in this. This means that redundant, duplicative and ineffective requirements will be identified and eliminated on an ongoing basis," Alikhan Smailov said.

He added that comprehensive measures are also being taken to automate the risk management system in state control. This work has already been completed in 35 spheres, which will enable to exclude groundless checks of business.

"In general, the implementation of the reform "from scratch" will improve the efficiency of business environment regulation and form a favorable and stimulating environment for business development. Business should feel that the government is interested in its stable and profitable activities," Smailov said. 

According to him, the expected effect will be to ensure that by 2029 the number of people employed in small and medium-sized businesses will increase to 4.7 million and reduce the share of the state in the economy to 14%.

In this regard, Prime Minister noted the need to ensure timely adoption of legislative changes to eliminate unnecessary requirements for business, to accelerate the introduction of appropriate changes to the bylaws and by the end of the first half of the year to complete the work on automation of state control system.

Besides, Alikhan Smailov stressed the importance of further automation of procedures for the selection of recipients of state support measures to increase their transparency, as well as the provision of comprehensive support for new business projects by akimats and ministries in terms of equal access to key production factors, infrastructure and electricity.

Finally, the Head of Government urged government agencies to promptly respond to appeals from entrepreneurs.

"The largest number of complaints has been identified in the areas of land relations, public procurement, tax administration, architecture and urban development. It is necessary to switch to a new proactive format of work and take proactive measures to solve systemic problems of business," Alikhan Smailov said.

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