Money, money circulation and credit - страница 36

It keeps meaning:

– for disadvantaged population;

– in the conditions of crisis when a quest of cash money increases;

– for an illegal economic activity, evasion of property taxes, because cheques, credit cards, transactions are used by judicial authorities in evidence of different offenses.

Nowadays a retail trading in Kazakhstan basically consists of cash-in-hand flow. The majority of population is not served in banks and paid in cash. The clients who have banking accounts prefer to withdraw cash and use it for all their expenses.

For tax authorities it is almost impossible to trace and control the taxpayers revenues on the markets with cash-in-hand flow domination. The main part of cash money is spent on small purchases. Just according to these small payments on retail trading market the different types of production and import supporters can distribute a considerable volume of an unaccounted goods and the State at that faces a problem of tax collection.

Many people nowadays work without an appropriate registration and as a salary is paid in cash it is quite difficult to collect the taxes between an employer and an employee. Today the state doesn’t have any mechanisms allowing to register a real volume of consumption of the population and estimate a business situation in the sphere of indirect taxation.

The money owner needs a transparency and is forced to count constantly the available sums of money. Thus he prefers to keep it in a wallet. If he could see the rest of sum every time he wants and his money in some manner would secured from inflation thus surely he wouldn’t refuse to keep money in bank and to have an access to it by means of payment cards usage.

The National Bank of Kazakhstan specifies the requirements of cash services organization for banks and their clients and also of cash money holding, shipment and accounting. Under the law of RK dated from June 29, 1998 № 237 («BegoMOCTH napaaMema PK», 1998 № 11-12, article 177) the settlements between the juridical entities on a sum exceeding 4 000 monthly calculation indexes are made only by bank transfers.

Table2

The structure of monetary stock in the Republic of Kazakhstan *

The data of Table 2 shows that in Kazakhstan the dynamic fluctuation of the monetary stock volume is observed. In the monetary stock total volume the cash money took more than 20 % till 2005. It was related to the economic situation changes in the country while in modern conditions the share of cash money in the total monetary stock volume is not big especially in the industrially developed countries (for example in USA it amounts about 8 %).