Kazakhstan Cracks Down on Transit Monopolies, But Challenges Remain

Kazakhstan's Transport Sector Faces Challenges Amidst Foreign Competition Kazakhstan's transportation sector is facing significant challenges due to the dominance of foreign companies in the transit market. According to Pavel Teplitsyn, head of the National Association of Carriers, foreign firms are registering businesses in Kazakhstan without investing in the country's economy. These firms benefit from tax incentives and repatriate large sums of money without paying taxes, resulting in significant losses for domestic companies. The situation has prompted President Tokayev to issue a reprimand to the Minister of Transport due to persistent border delays and setbacks in crucial projects. "Foreign companies are massively registering businesses here without investing in the country, receiving preferential permits and taking out huge sums practically tax-free," Teplitsyn stated. The Minister of Transport, Marat Karabaev, explained that new regulations are designed to combat monopolies and illegal permit resale. These measures have already led to a three-fold reduction in the number of vehicles operating under foreign permits, dropping from 90,000 to 33,000. While these changes address some issues, the challenges in Kazakhstan's transport sector remain complex and require ongoing attention.