Starting from mid-May, a new type of expenses related to the purchase of technological equipment will be launched for SMEs. The innovation will help entrepreneurs to modernize and upgrade their technological park, which will increase labor productivity, increase the range of manufactured products and ensure energy efficiency of the enterprise.

Arstanbek SAGIEV, Head of the Business Stimulation Directorate of the Kazakhstan Industry and Export Center "QazIndustry" JSC, told about the new type of costs.

"The introduction of this type of costs was requested by representatives of the business community, as the lion's share of the costs of enterprises is the cost of

technological equipment. The Ministry of Industry and Construction took this into account, and in March this year, amendments were made to the "Rules for the provision of state incentives for industry". From May 12, 2024, enterprises that produce finished products included in the list of priority goods can apply for reimbursement of part of the costs associated with the purchase of equipment.

QazIndustry will reimburse up to 40 percent of the funds spent by enterprises aimed at the purchase of technological equipment, but not more than 60 million tenge", - said the head of the directorate.

For example, when introducing digital technologies, costs associated with the purchase of equipment such as 3D scanners and printers, large format printers will be reimbursed.

There were several reasons for the need for this new type of cost.

First, Kazakhstan's manufacturing enterprises have at least 30% wear and tear on their existing capital equipment. This negatively affects the overall productivity of the industry, as well as the competitiveness of domestic manufacturers.

Secondly, many SMEs lack free cash for production development. It is difficult to obtain a loan from credit organizations due to the high level of indebtedness of enterprises. Loans, high financial burden force companies to postpone

modernization.

"Therefore, the new type of reimbursement of costs in the amount of 40 percent of the cost of purchased equipment is one of the most effective types of

state support. Definitely, such a measure will stimulate enterprises to modernize by updating the fleet of technological equipment," QazIndustry believes.

An enterprise that wishes to apply for a new type of cost must have been in business for at least one calendar year prior to the date of receipt of the application, have no arrears of taxes, mandatory pension contributions, mandatory occupational pension contributions and social contributions as of the date of application.

The industry entity must provide an annual increase in tax deductions for the previous three years prior to the date of application. This requirement does not