MP proposed introducing tax breaks for shopping malls in Kazakhstan

Tengrinews.kz — Mazhilis Deputy Azat Peruashev has proposed introducing tax breaks for shopping centers during renovation periods and allowing retail property owners to use a special tax regime.
In a formal parliamentary inquiry, Peruashev stated that entrepreneurs from Shymkent, Karaganda, Semey, Uralsk, and Astana are reporting a decline in foot traffic at shopping and entertainment centers as well as a drop in consumer activity.
According to the business owners, this is leading to falling revenues for both retailers and the leasing business. Entrepreneurs cite the exclusion of retail space leasing from the list of activities permitted to use the special tax regime (STR) as one of the primary causes.
However, Peruashev believes the issue extends beyond taxation. In his view, shopping centers are losing visitors due to the rapid growth of e-commerce, marketplaces, remote shopping, and delivery services. The deputy also cited declining purchasing power as an additional factor.

"Shopping complexes are facing declining foot traffic, a reduction in the number of tenants, an increase in vacant space, and a drop in investment attractiveness," the Mazhilis member stated.

The deputy noted that billions of tenge have been invested in the construction of shopping centers and supporting infrastructure. Furthermore, the operation of these facilities is directly linked to jobs, tax revenues, and the business of domestic manufacturers and suppliers.
Proposal to reformat shopping centers
Peruashev suggested developing a dedicated program to reformat shopping centers in collaboration with the business community.
According to the deputy, shopping malls need to gradually transform into multifunctional public spaces. This could include adding children's and sports zones, attractions, fitness centers, wellness and educational institutions, gaming clubs, food courts, and other services.
However, such a transformation will require significant expenditure, including building renovations and the re-equipping of vacant spaces.
In this regard, the deputy proposed providing for:

tax breaks for specific shopping centers during their renovation periods;
affordable lending for the renovation and re-equipping of premises;
recommendations on alternative business directions;
standardized solutions for the remodeling of buildings and retail spaces;
state support measures for program participants.

Furthermore, Peruashev proposed allowing the use of the STR for the business activity categorized under OKED 68204 — "Leasing and management of retail real estate".
The Mazhilis member believes that timely measures will help preserve jobs, increase the profitability of retail infrastructure, and assist shopping centers in transitioning to new operational formats.
As a reminder, starting in 2026, an updated special tax regime based on a simplified declaration will take effect in Kazakhstan. The government has approved a list of activities prohibited from using this regime.