Kazakhstan has become the leader among the Eurasian Economic Union (EAEU) countries in terms of value-added tax (VAT) revenue growth. In January–March 2026, VAT collections increased by 48.6% to 1.96 trillion tenge. For comparison, VAT revenues in Russia grew by 10.3%, in Armenia by 4.9%, and in Kyrgyzstan by 3.9%. This was reported by Qazaqyia.kz citing Kursiv Media.
Consolidated budget revenues in Kazakhstan rose by 11.2% in the first quarter to 7.8 trillion tenge. Among EAEU countries, only Kyrgyzstan showed higher growth (+45.6%), while Armenia's revenues increased by 12.7% and Russia's declined by 1.6%.
According to the Eurasian Economic Commission (EEC), VAT accounted for 25% of all revenues in Kazakhstan, corporate income tax for 19%, and other tax and non-tax revenues for 31%. Domestic VAT collections surged by 77% to 1.08 trillion tenge, while VAT on imported goods rose by 24% to 879 billion tenge.
Corporate income tax revenues increased by 7.4% to 1.5 trillion tenge, and excise taxes grew by 27.4% to 265 billion tenge. Meanwhile, revenues from foreign economic activity fell by 7.3% to 379 billion tenge.
Despite revenue growth, the share of budget revenues in Kazakhstan's GDP slightly decreased from 23% to 22.5%. In comparison, this indicator rose in Kyrgyzstan from 54.9% to 61.4% and in Armenia from 29.4% to 30.4%.
Value-added tax (VAT) has become a key element of tax reform in Kazakhstan. Under the new Tax Code, the basic VAT rate was raised from 12% to 16% effective January 1, 2026. Initially, the government proposed a 20% rate, but it was reduced to 16% during discussions. Reduced rates were also introduced: 5% for medicines and medical services in 2026, increasing to 10% in 2027, and a zero rate for exports was maintained.
The reform also changed tax administration rules. The mandatory VAT registration threshold was lowered to 10,000 MCI (monthly calculation index), equivalent to about 43 million tenge in annual turnover in 2026. As a result, the number of VAT payers is expected to increase, including small and medium-sized businesses.
The Eurasian Economic Union (EAEU) is an international economic union established in 2015 to create a single market for goods, services, capital, and labor. The union includes Kazakhstan, Russia, Belarus, Armenia, and Kyrgyzstan. EAEU members apply a common customs tariff in foreign trade, coordinate economic policies, and ensure free movement of goods, workers, and investments among member states. The supranational regulatory body is the Eurasian Economic Commission.