Kazakhstan budget to lose KZT 466 mln from new farm subsidies
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Kazakhstan's state budget will lose 466 million tenge in revenue due to new agricultural tax breaks, LSM.kz reported. The measure is part of a broader government effort to support the farming sector amid rising input costs.
Revenue Shortfall
The new agricultural tax breaks will reduce budget revenues by 466 million tenge, according to LSM.kz. The figure represents a direct fiscal cost of the government's decision to exempt certain farm inputs from value-added tax and reduce land tax rates for smallholders. The Ministry of Agriculture has not yet commented on the estimate.
Policy Rationale
The tax breaks are designed to lower production costs for farmers, who have faced rising prices for fuel, fertilizer, and seeds. Kazakhstan's agricultural sector accounts for about 5% of GDP but employs nearly 20% of the workforce. The government hopes the measure will boost output and reduce food price inflation, which stood at 8.2% in May 2026.
What's Next
The tax breaks are expected to take effect in the third quarter of 2026, pending final approval by the Senate. It remains unclear whether the revenue loss will be offset by higher agricultural output or require compensatory budget cuts.
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Kazakhstan budget to lose KZT 466 mln from new farm subsidies
