Government Officials in Kazakhstan Advocate for Fiscal Benefits and Monetary Support to Fortify the Creative Sector
Lighting Up Kazakhstan's Creative Scene
Astaná - Kazakhstan's vibrant creative landscape is on the rise, employing roughly 143,600 talented souls across various sectors, as announced by the Minister of Culture and Information, Aida Balayeva, during a March 18 gathering.
(Photo credit: Adobe Stock)
During this gathering, Balayeva highlighted the creative sector's continuous growth, shared plans to drive further expansion, and reported the recent developments as shared by the Prime Minister's press service.
This buzzing Kazakh creative industry consists of 12 distinct sectors catering to 43 economic activity classifiers. With a whopping 45,597 registered entities within the nation's borders, it contributes a solid 1% to Kazakhstan's overall gross added value.
Many of these entities reside in Almaty and Astaná, while independent entrepreneurs make up a staggering 70% of the total workforce. Ethnic crafts dominate this sector, with over 12,000 small and medium-sized enterprises (SMEs), and the IT sector plays a substantial role, with 40% of limited liability companies (LLPs) operating within this field.
The most labor-intensive sectors include IT, architecture, fashion, cultural institutions, libraries, museums, and folk crafts. To bolster this thriving industry, Balayeva proposed several stimulating tax incentives. She suggested maintaining the current retail tax regime and established reduced rates for VAT (value-added tax) and corporate income tax (CIT) for businesses in the creative sector. These proposed measures would bolster creative enterprises, fostering innovation and growth in light of the upcoming Tax Code discussions.
One exciting initiative to jumpstart the creative industry is the establishment of a Creative Industry Development Fund. Balayeva detailed the upcoming fund's creation in collaboration with leading creative and educational organizations, which will support the sector in four main areas: talent identification, project development, infrastructure development, and export promotion.
"The Creative Industry Development Fund, set to be built with a 3% deduction from the national lottery operator's revenue, will focus a significant portion on the development of venture investment in the creative industries. To make this happen, a venture division will be implemented within the Astana International Financial Centre (AIFC), with input from a pool of management companies that will optimize funds' deployment based on urgency and repayment," she explained.
Balayeva emphasized the need to nurture and showcase the creative industry as a significant economic player, stressing the importance of talent cultivation, infrastructure, and international exposure for continued success. The government's commitment to fostering this sector is expected to produce lasting positive effects, notably for Kazakhstan's economy, cultural heritage, and global standing.
Prime Minister Olzhas Bektenov reported that the global exports of creative goods and services eclipsed $250 billion last year. Research firm G20 Insights anticipates that by 2030, the creative economy will account for at least 10% of global GDP, underscoring its growing influence in the global economy.
In 2021, the development of computer games contributed 460 billion tenge (US$923.1 million) to Kazakhstan's gross added value, while the number of Kazakhstan's film releases increased by 58%. Half of the top 10 box office films were locally produced, with foreign and homegrown films generating nearly identical revenue, suggesting a growing interest among viewers in national content.
Additional insights:
- Training Programs: A training program for regional akimats (local governments) has been initiated, focusing on legislative changes, state support measures, best practices, and international experiences in the creative sector[1][2].
- Creative Industries Fund: Planned for 2025, the Creative Industries Fund is a key component in Kazakhstan's creative industries development strategy, set to extend activities to production centers, dance, advertising, and PR agencies. A draft law is in the works by the Ministry of Culture to systematically support the sector[3].
- International Collaboration: Kazakhstan aims to partner with Hollywood studios for global cinema and streaming platform access, along with international projects[3]. It is also working closely with Italy for fashion, design, and crafts initiatives, promoting local artisans and cultural heritage. Similar collaborations are underway with the UK, Republic of Sakha (Yakutia), and France, focusing on music, education, streaming services, and festival exchange[3][4][5].
- Cultural Heritage and Artisan Development: The goal of the Kazakhstan Artisan Initiative is to engage more youth in craft practices, expand artisanal skill sets, and connect artisans in the U.S. and Kazakhstan, including exchanges with the Smithsonian Center for Folklife and Cultural Heritage[4].
- Infrastructure Development: Plans call for the opening of eight additional creative hubs in 2025, with a total of 12 creative hubs slated to be in operation by the end of the year, playing a crucial role in attracting investment and promoting regional development[3].
The proposed venture division within the Astana International Financial Centre (AIFC) aims to focus a significant portion of the Creative Industry Development Fund on the development of venture investment in the creative industries, particularly in finance and business sectors. In line with this, Balayeva also emphasized the need for international collaboration in various creative fields such as sports.
