"Atameken" excluded illogical rules from the law on advertising

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Banks, exchange offices and gas stations won’t pay taxes for their own advertising signs

On 29^th of March 2016 the President of Kazakhstan Nursultan Nazarbayev signed the law "On amendments and additions to some legislative acts of Kazakhstan on the issues of reduction of permits and simplification of licensing procedures".

On 22^nd of April 2016 the legal act comes into force. As part of it the National Chamber of Entrepreneurs of Kazakhstan "Atameken" has managed to simplify regulations, which influenced negatively the development of business, for example, in the field of advertising.

In particular, the problem of different interpretation of the requirements for the attribution of various objects to objects of advertising was resolved. For example, many business entities had to pay for their signs as for outdoor advertising. So, because of faults in the legislation, big business suffered a lot, such as banks and small - firms providing photocopying services, printing. The tax was not imposed only on business in the field of trade, catering and domestic services. Now the signs are excluded from the objects of advertising for all businesses.

As a result of the legislative gap in the field of advertising, there were a lot of litigations in Kazakhstan, disputing charges for placement of placards with gasoline prices on the territory of the gas station. Exchange offices also had to pay for signs with exchange rates.

The adopted law provides amendments that remove the above mentioned shortcomings and conflicts.

In addition, new amendments to the legislation addressed the issue of obtaining land plots. Prior to the adoption of the law the employees of local executive bodies had the opportunity to refuse to grant a land plot in the absence of DDP (detailed planning projects). At the same time certain individuals obtained land plots in the absence or non-compliance of DDP. These facts were established during the prosecutorial investigation initiated by NCE in the Akimat of Karaganda, Balkhash, EKR, SKR. For example, Akimat of Karaganda provided 121 land plots in 2013-2014, out of which 90 were provided in the absence or non-compliance of DDP, only on the basis of preliminary designs.

The adopted amendments to the Land Code of the Republic of Kazakhstan provide for the elimination of the above-mentioned administrative barriers to obtaining land plots.

It is worth noting that the modifications were introduced to minimize the risks of corruption by the local executive bodies and to allow entrepreneurs to receive or use the necessary land for the construction. Thus, even in the absence of approved DDP, entrepreneurs will receive land plots in accordance with the general plan of a settlement.