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Prime Minister of Kyrgyzstan outraged how profitable businesses evade taxes

«Each house in Issyk-Kul region is a vacation hotel that earns 60,000 soms per day, and pays 600 soms per month for a license,» the Prime Minister of Kyrgyzstan Mukhammedkaly Abylgaziev stated at a board meeting of the State Tax Service today.

According to him, hundreds of vacation hotels and resorts are working in Issyk-Kul region, but tax deductions from this region are minimal. The head of Government is also outraged by the amount of taxes that cafes and restaurants pay.

«They pay for a small license, while their income is huge. For example, one dinner in a restaurant costs 3,000 soms. It is served at least five times a day at a table. It turns out that the income is 15,000 soms. We have repeatedly said about need to move away from licenses. We must learn to pay taxes. We will change fiscal policy. The system must be operational. But not a single step was taken on your part,» Mukhammedkaly Abylgaziev said.

«There are a lot of banquet halls and restaurants that have to pay huge sums of money to the budget, but for some reason they work on a license. Our taxpayers are like a pyramid. It is unstable, because those who earn by easy labor pay less to the budget than those who earn by hard work. Some restaurants earn more than enterprises. We must revise the license system, because if about 1,000 enterprises out of 2,000 are closed, the budget will be at a loss,» he said.

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