Will iPhones be charged with luxury tax in Kazakhstan?

iPhones will not be charged with luxury tax because it is going to be imposed on things more expensive than $200,000, Zakon.kz reported, citing Minister of National Economy Alibek Kuantyrov.

What happened? The minister was asked whether the government is going to impose a luxury tax on things bought on credit like iPhones.

«No. It’s not about iPhones. That’s for sure. We are talking about really expensive things like cars that cost more than, let’s say, $200,000. An owner of such a car would pay a luxury tax even if it’s bought with a loan. Concerning iPhones, it usually costs $1,500 at maximum,» the minister said.

He also noted that the luxury tax will be applied to every expensive thing no matter how you have acquired it. However, specific sums are still under consideration by the authorities.

The context. In June, the Ministry of National Economy announced that those Kazakhstanis who own ten or more apartments and vehicles worth more than $105,579 will pay the luxury tax. As Finance Minister Yerulan Zhamaubayev noted, those who own just five or six apartments won’t be charged with the new tax.

President Kassym-Jomart Tokayev came up with the idea of the luxury tax in September 2022. The tax is not supposed to affect the middle class.