Social impact of taxation reforms in Kazakhstan: evaluating the VAT increase and its consequences for local development.

Kazakhstan's economy has been, and still is, very oil-dependent, making it vulnerable to external shocks. In recent years, the decrease in oil revenues and the growth of social spending have put pressure on the governmental budget. To address this issue, the government has introduced a taxation reform, which involves an increase in the value-added tax (VAT) rate, with the goal of making the country less dependent on resource earnings. This thesis will investigate the VAT rate increase in Kazakhstan in the context of resource-dependent countries. The research will attempt to identify the possible social and economic implications of the VAT rate increase, particularly in relation to local development dynamics. The research will use existing literature on taxation in resource-rich countries to position Kazakhstan’s experience within a comparative framework. The methodology used in this study is a qualitative case study method, relying on secondary data sources such as policy documents, fiscal reports, and academic literature. The focus of the study is to explore the relationship between fiscal policy and its impact on local development. Key words: local development, budget deficit, taxation, oil-dependent economy, tax policy.