The New Tax Code of Kazakhstan

The first years of independence of Kazakhstan remain in the nation''s memory as the hardest period before stabilization. After 17 years of independence Kazakhstan has succeeded in a number of significant achievements. In his annual message the President of the Republic of Kazakhstan highlighted the necessity of adjusting the tax system in accordance with the tasks required for a new stage in the development for Kazakhstan. However this decision to create a new tax code was made in February 2008 when the oil price was steadily growing and a great number of oil experts were of the firm belief that the price of oil per barrel would reach $200 . The oil shock of 2008 when the price of oil per barrel decreased below $40 was an absolutely unexpected event. The current oil market itself represents a natural tool that will measure the efficiency of the new tax code in real life situations. Therefore the aim of this paper is to find out if the new tax code was created simply to generate more oil revenue with a pointless increase in the burden on taxpayers or if it was developed with the intention of creating an efficient as well as effective tax system.