Kazakh government discussing flat-rate tax for livestock framers
The government of Kazakhstan at a meeting on Tuesday discussed the concept of the National Program for Livestock and Meat Industry for 2018-2027, that entails preferential loans and a flat-rate agricultural tax.
First Deputy Minister of Agriculture Arman Evniyev said that land and loans will be provided to the most efficient farmers who apply breed improvement technologies.
Financing of the program will be raised from multiple sources: KazAgro National Holding, Productive Employment Program, the World Bank and the Asian Development Bank.
"The program is estimated to bring up the number of farms from 20,000 to 100,000, create 150,000 jobs in rural areas, increase cattle from 7 million to 15 million heads, ramp up production of beef and lamb from 600,000 tonnes to 1.6 million tonnes, increase export revenues from the industry to $ 2.4 billion and labor productivity per employee from $1,000 to $8,000," Evniyev said.
Irrigation of one million hectares of pastures will need building an additional irrigation infrastructure to collect water from rivers and melting snow. The funds for grassland irrigation will be raised through major international organizations, including the Asian Development Bank.
"The concept is being developed with the involvement of experts from international organizations, such as BCG, the World Bank, the Asian Development Bank, who will actively participate in financing the program. The major meat production companies Inalca Eurasia (Europe), Cedar Group (Australia), and Chinese corporations Rifa Holding and Citic Group have confirmed their interest in joining the program. There are plans to engage Tyson Food and JBS as well,” Evnyiev said.
The program provides for the allocation of 76 million hectares of pastures; preferential loans to farmers; a flat-rate agricultural tax (law amendments required); import of pure-bred cattle to increase the number of livestock; funds from Nurly Zher and Nurly Zhol programs to create infrastructure for farmers; localization of related industries; establishment of training centers for farmers and veterinary risks insurance.
SOURCE: Kazinform