Kazakhstan is entering a new phase of fiscal digitalization, leveraging artificial intelligence to identify and analyze illicit schemes in the shadow economy. Building on the existing Smart Data Finance platform, a system for storing and processing big data, a new digital solution will be developed to integrate information systems across government agencies.
Deputy Minister of Finance Yerzhan Birzhanov announced the initiative, stating that Smart Data Finance, which has been in use for over a year, has already proven effective in detecting tax violations. The system aggregates data from external sources and implements a “Taxpayer Dossier,” enabling the creation of digital profiles for legal entities and individual entrepreneurs.
The forthcoming upgrade will enhance Smart Data Finance’s capabilities by allowing it to cross-reference data from tax, customs, labor, and industry systems. This integration will help identify vulnerable sectors prone to “gray” economic practices and track the flow of illicit activity across industries.
Simultaneously, the government has decided to replace separate sectoral roadmaps with a unified Comprehensive Plan to Combat the Shadow Economy. This plan, too, will be monitored using AI-powered tools.
According to the Cabinet, substantial progress has already been made in digitizing high-risk sectors such as trade, construction, transport, healthcare, education, and agriculture.
Special attention is being given to the trade sector, which remains one of the most susceptible to shadow operations. The ongoing implementation of several tools, including the National Catalogue of Goods, a domestic producer registry, labeling and traceability systems, electronic invoicing, digital VAT, and the digital tenge, is intended to reduce opportunities for illegal transactions.
As previously reported by The Times of Central Asia, Kazakh authorities have steadily escalated pressure on the shadow sector in recent years. Measures range from tightening controls on smartphone imports to negotiating with employers to curb the practice of paying salaries “in envelopes.”
