Kazakhstan’s National Bank does not support the idea of raising taxes on people who own multiple apartments, arguing that the government should focus on taxing profits from real estate sales rather than imposing additional taxes on property ownership, according to the bank’s Governor Timur Suleimenov.
Speaking at a briefing following the National Bank’s decision on the base rate, Suleimenov was asked to comment on a proposal by Lyazzat Ibragimova, chairwoman of Otbasy Bank, to increase taxes for Kazakhstanis who own three or four apartments.
Read also: Risky business: Kazakh housing bank chief Ibragimova compared to Venezuela’s Maduro.
Expanding investment opportunities
Suleimenov said Kazakhstanis should be better informed about investment options beyond bank deposits and real estate.
«A certain segment of the population believes that we have only two investment instruments: deposits and real estate. In fact, our stock market is developing quite well — the Kazakhstan Stock Exchange (KASE), the Astana International Exchange (AIX), and now the digital financial assets market. There are many more investment opportunities available,» he said.
According to Suleimenov, professional market participants should play a more active role in educating the public about available investment instruments.
Focus on taxing profits, not property
At the same time, Suleimenov said additional taxes on owners of multiple apartments are unnecessary.
«I believe there is no need ‘to punish’ people with additional taxes. Tax should be paid on profit. If you buy a property at one price and sell it at a higher price, you pay tax on the difference. That is probably the fairest approach,» he said.
Suleimenov also questioned the practicality of raising property taxes for owners of multiple apartments.
«If you own two or three apartments, such a property tax would be difficult to administer. In general, property taxes should be applied uniformly. It is better to focus on effective administration and collect revenue through income-based taxation,» he added.
