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Economy of simple things, tariff setting and incomes of population: Bakytzhan Sagintayev holds a meeting with entrepreneurs of Zhambyl region

14 November 2018, 13:08
Zhambyl Region
Photo, video: PrimeMinister.kz

November 14 as part of his working trip to Zhambyl region, Prime Minister Bakytzhan Sagintayev met with the business community of the region to discuss topical issues and future prospects, taking into account the implementation of President’s instructions on expanding microcredit, conducting a tax amnesty, increasing income, support for manufacturing enterprises, as well as transparency of tariff formation.

The purpose of the meeting is to learn firsthand about the state of affairs in the region, to discuss the implementation of state programs and to outline joint plans for their further implementation. In the Address to the people of Kazakhstan, the Head of State paid special attention to the development of entrepreneurship, noting that the State Business Support and Development Program Business Road Map 2020 is an effective tool for supporting business and decided to extend it until 2025 with an additional allocation of 30 billion tenge annually.

The Government is currently conducting systematic work on solving the tasks set by the President. So, the State program of industrial-innovative development up to 2025 will be developed. 500 billion tenge will be additionally allocated for the support of the manufacturing industry and non-commodity exports during 2019-2021 and at least 600 billion tenge for lending to industrial projects.

As part of the execution of the Head of State’s instruction, a tax amnesty will be held on the accrued penalties and fines for small and medium businesses, in parallel, work will be carried out to further decriminalize tax offenses, improve conditions for business, digitalize strategic enterprises, etc.

In the President’s Address, from Jan. 1, 2019, it is entrusted to start a “tax amnesty” for small and medium-sized businesses. As of Oct. 1, more than 89,000 SMEs are in arrears in the amount of 331.8 billion tenge. The amount of accrued interest is 121.2 billion tenge, fines — 6.9 billion tenge. The Government in pursuance of the instructions of the Head of State will carry out the relevant work on the write-off of fines and penalties, subject to the repayment of the principal debt until December 31, 2019.

The Prime Minister drew the attention of entrepreneurs to the development of the economy of simple things, the social economy in the region. Sagintayev noted that it is necessary to find projects important for Zhambyl region and promote them. This issue should be resolved at the regional level.

The Deputy Chairman of Atameken NCE Eldar Zhumagaziev, in turn, reported on the development of SMEs in the region. Within the framework of the Program for the Development of Productive Employment and Mass Entrepreneurship in the Zhambyl region, 2,000 people received training in 2018. About 98% of graduates defended their business projects. This program, according to Zhumagaziev, will be a good help to increase the income of the population.

During the meeting, regional entrepreneurs noted the importance and expressed support for the initiatives voiced by the President in the Address. Chairman of the Regional Council of the Chamber of Entrepreneurs, General Director of Kazphosphate LLP M. Iskandirov said that within the framework of the President’s Address, the salaries of the company’s employees were raised by 13.5%.

“We issued an order to raise the salaries of all employees from Jan. 1, 2019, by another 10%, thus the average salary will be 140,000 tenge. In addition, we analyzed: it turns out we also have people who receive low salaries — 36 people who receive around 55,000 tenge. They are cleaners, storekeepers and others. Their salaries were raised by 20% from Jan. 1,” Iskandirov said, also noting that the business community of the region is closely following the news in the field of tariff setting, especially waiting for a reduction in electricity tariffs.

Director of the Chamber of Entrepreneurs of the Zhambyl region M. Shakerberk noted that the industrial complex of the region accounts for more than 17% of the gross regional product. The Address of the President focuses on the development of the manufacturing industry. In this regard, in the region screening was carried out at all manufacturing facilities — these are 596 functioning manufacturing enterprises. According to the results of the analysis, a Roadmap was developed to support manufacturing enterprises. Within the framework of the Map, it is planned to provide non-financial support from the structural units of the regional akimat and district akims.

“In general, such measures as increasing the incomes of enterprises by 20%, improving labor productivity one and a half times, production — twice, renewal and modernization of equipment are planned. According to forecasts, the volume of industrial production in the manufacturing sector will increase by 50 billion tenge by 2020, amounting to 305 billion tenge. It is expected that the share of the manufacturing industry in the gross regional product will increase by 6%, amounting to 205.2 billion tenge, tax revenues to the regional budget will increase by 1.1 billion tenge, the total volume will reach 3.2 billion tenge, 800 new jobs will open,” said Shakerberk.

A member of the regional Council of the Chamber of Entrepreneurs, Y. Saurykov, raised issues of tax amnesty for businesses. According to him, this measure will certainly provide an opportunity to develop small and medium-sized businesses and thus help them to contribute to the improvement of the economy and the social situation of the country.

The Chairperson of the Council of Businesswomen of the Chamber of Entrepreneurs, A. Akchalova, in her speech addressed the issues of increasing social responsibility and the work being done to restore order in utility and natural services tariffs and natural monopolies. Thus, the tightening of tariffs for utilities, the release of these costs, according to the entrepreneur, would allow redirecting funds to increase the salaries of employees, which will increase the inflow of skilled and loyal personnel.

Director of Goodmaker LLP A. Kainazarova noted the importance of measures provided by the state to support export-oriented agricultural enterprises. Since the early 2018, 753 farms in the region have submitted applications for subsidies, of which 373 received subsidies for 1.6 billion tenge, in November it is planned to allocate an additional 511 million tenge from the local budget. In general, 3.5 billion tenge was allocated from the regional budget for the development of breeding cattle breeding, livestock productivity and improving the quality of agricultural products.

General Director of Taraz Metallurgical Plant LLP N. Rabatov commented on the issues of extending the Business Roadmap Program to 2025, as well as reforms in the field of natural monopolies, in terms of tariff setting. Rabatov also touched on measures to increase wages to factory workers.

“In our company, five people receive 60,000 tenge each. In November 2018, we raised their salaries. Now 336 people are paid around 80,000 tenge. We plan to raise salaries by 10% in 2019. Work in this direction will be continued,” the plant’s general director said, also stating that the business community in the region supports the decision of the Head of State to extend the Business Roadmap for another five years.

Acquaintance with the development of SMEs in the Zhambyl region continued during a visit to the food industry enterprise Confectionery Factory Saule LLP, implemented under the Business Road Map 2020. Here the Prime Minister examined the technological process and the product line.

According to the director of the enterprise, S. Janabekova, in the seven months 2018, 30,000 products were produced for 16.2 million tenge. The construction of the second stage of the factory is currently underway: in December 2018 the reconstruction of the workshop will be completed, the construction of a new building and the acquisition of new production lines are planned for 2019. The introduction of modern equipment will increase the capacity of the enterprise from 4,500 tons to 12,000 tons and export products. An additional 170 new jobs will also be created.

Deputy Akim of Zhambyl region T. Zhanke reported on the work being done to create a new model of growth, diversify the regional economy, including on the issues of economic development of simple things. Thus, over the 10 months 2018, four large investment projects worth 26.9 billion tenge were implemented in the region, and another four to 13.8 billion tenge will be launched by the end of 2018. In 2019 it is planned to implement 13 projects for a total of 62.3 billion tenge, aimed at strengthening traditional industries such as industry, agriculture and the fuel and energy complex, which are also included in the industrialization program. According to the akimat, 10 projects with a total investment of 673.6 billion tenge will ensure an annual growth of GRP at the level of 6-7% compared to the previous year, instead of 3-4% annually.

As part of the fulfillment of the President’s Address, an analysis was made of all the regions (373 settlements) in the region and the need to build 228 SME facilities was identified. These are bakeries, sewing shops, wool harvesting centers, trade, catering and other services. These initiatives will be implemented in the framework of the Program of Productive Employment and Mass Entrepreneurship, as well as the regional programs Bereke and Microcredit in the Countryside. As a result, the share of SMEs in the structure of GRP will increase by 1-2%.

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