Environmental tax mechanism in Kazakhstan: theoretical approach

Abstract

Rapid technological and economic development has posed serious environmental threats, with toxic emissions and waste accumulation affecting both developed and developing countries. The environment is greatly impacted by the release of toxic substances into the atmosphere and the accumulation of waste. To address these issues, the article explores the potential of using the tax system to implement environmental policy, focusing on Kazakhstan's transition to low-carbon development. The study aims to highlight the significance of environmental taxes and explore ways to reduce greenhouse gas emissions by analyzing Kazakhstan's existing environmental taxes and CO₂ emissions dynamics globally. To achieve this goal, the study employs a mixed approach, including a literature review and a statistical, comparative analysis of vehicle taxation policies in Kazakhstan, identified as one of the main sources of exhaust emissions. The significance of this work is underscored by the fact that, despite Kazakhstan's active participation in global climate initiatives, it remains the largest greenhouse gas emitter in Central Asia. Drawing on the experience of developed countries, which primarily address environmental issues through market mechanisms, Kazakhstan also needs to consider incentive mechanisms using tax instruments to ensure environmental safety and reduce the carbon footprint of its products. The study utilizes methods of comparison, analysis, synthesis, and summarization of scientific research and expert assessments. It is proposed to classify the transport tax as an environmental tax and improve its calculation by considering the vehicle's environmental class and year of manufacture. The practical significance of this work lies in isolating environmental taxes from other tax payments and clearly defining the directions for reforming Kazakhstan's tax system. Additionally, it is crucial to classify environmental taxes, develop usage methods, ensure proper distribution of revenues, and facilitate accurate international comparisons for sustainable development.

Key words: environmental pollution, environmental tax, Pigouvian tax, the «polluter pays» principle, transport tax.