Kazakhstan budget to lose 466 mln tenge from new farm subsidies
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Kazakhstan's state budget will lose 466 million tenge in revenue due to new agricultural tax exemptions, according to LSM.kz. The measure, approved by the government, exempts certain farm inputs from value-added tax. The shortfall comes as the government seeks to boost agricultural output amid fiscal constraints.
The Tax Exemption
The government has approved a package of tax breaks for agricultural producers, exempting fertilizers, seeds, and certain machinery from value-added tax. The measure is intended to lower input costs for farmers and boost domestic food production. LSM.kz reports the total revenue loss to the budget is estimated at 466 million tenge.
Fiscal Impact
The 466 million tenge shortfall represents a small fraction of Kazakhstan's total budget revenue, which exceeded 15 trillion tenge in 2025. However, the loss comes as the government faces pressure to increase social spending and infrastructure investment. The Ministry of Finance has not announced offsetting measures.
What's Next
The tax exemptions are set to take effect in the third quarter of 2026. It remains unclear whether the government will introduce compensatory revenue measures or adjust spending priorities to cover the shortfall.
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Kazakhstan budget to lose 466 mln tenge from new farm subsidies
