Kazakh MP calls for review of tax reform after 200,706 SMEs close in H1 2026

September 23, 2026 at 01:09 PM2 min

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Kazakhstan's active small and medium-sized enterprises fell by 200,706 to 1,974,899 in the first half of 2026, according to Bureau of National Statistics data cited by MP Konstantin Avershin. Avershin has formally requested a review of the tax reform introduced by Deputy Prime Minister Serik Zhumangarin, citing a surge in sole proprietor closures. The deputy's request comes as 207,912 individual entrepreneurs ceased operations in the first quarter of 2026 alone.

Key Facts

The number of active SMEs in Kazakhstan fell from 2,175,605 on January 1, 2026 to 1,974,899 by July 1, 2026, a decline of 200,706.
Almaty accounted for 41,252 of the lost SMEs, the largest regional decline.
In the first quarter of 2026, 207,912 individual entrepreneurs ceased operations, compared with 82,874 in the same period of 2025 and 125,093 in 2024.
MP Konstantin Avershin has requested a full breakdown of sole proprietor closures, including how many switched to the special tax regime for the self-employed.
President Kassym-Jomart Tokayev has previously said the Tax Code is 'not a sacred scripture,' leaving room for revision.

SME Decline

Bureau of National Statistics data cited in Avershin's request show 2,175,605 active SMEs on January 1, 2026, falling to 1,974,899 by July 1, 2026. The six-month drop of 200,706 entities included a decline of 41,252 in Almaty alone. The Bureau attributes the reduction partly to individual entrepreneurs switching to the special tax regime for the self-employed. Avershin argues the change cannot be explained solely by a shift in tax status.

Sole Proprietor Closures

In the first quarter of 2026, 207,912 individual entrepreneurs ceased operations, more than double the 82,874 recorded in the same period of 2025. The 2024 first-quarter figure was 125,093, indicating a sharp acceleration in closures. Avershin has asked the government to provide a full structure of these closures, including how many entrepreneurs actually shut down, how many moved to the self-employed regime, and how many stopped after switching to the generally established regime. He also requested an assessment of the impact on employment, jobs, SME turnover, tax revenues, and the shift of business activity into the informal sector.

Call for Revision

Avershin proposes developing measures to amend tax legislation based on the analysis. He recalled that President Kassym-Jomart Tokayev has previously allowed for a revision of tax norms, saying the Tax Code is 'not a sacred scripture.' The deputy stressed that behind the statistics are concrete enterprises, jobs, citizens' incomes, the tax base, and the stability of regional economies.