"Termination of Unaccounted Flour Imports Led to Increased Tax Revenues and Fiscalization of the Industry, - Head of the Association"

Виктор Сизов Economy
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The cessation of unaccounted flour imports, according to the president of the Millers Association, Rustam Junushov, has not affected prices for the end consumer; however, it has contributed to an increase in tax revenues and the fiscalization of the sector. As he reported on the radio, since 2022, flour prices have remained stable.

Junushov noted that previously, smuggled flour was cheaper due to the absence of VAT payments, with the price difference reaching 2.5–3 soms. This allowed for market dumping. With importers transitioning to legal supplies and tax payments, flour prices have practically aligned with the prices of domestic products, and in some cases, have even become higher.

Imported flour is mainly used for the production of bakery products, including in tandoors, as well as in the hotel and restaurant segments (HoReCa), thanks to its high gluten content, characteristic of Kazakhstani flour. However, with the increase in its cost, producers are increasingly turning to local manufacturers.

According to Junushov, this has led to a process of fiscalization in the industry. Previously, many bakeries and confectioneries used unaccounted flour and did not record sales volumes, but now all purchases and product sales occur officially, taking into account turnover at all levels—from processors to stores.

The head of the Association emphasized that the milling industry was one of the first to express a desire to operate in a regulated format. "We initiated this process ourselves and declared our readiness for fiscalization and cooperation: the state provides benefits, and we, in turn, ensure returns and food security," he added.

Junushov also noted that over the past 4-5 years, the industry has demonstrated stable growth, and the contribution of millers has become an important part of the overall increase in tax revenues to the budget.
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