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First Deputy Prime Minister: Tax Service is not punitive agency

The First Vice Prime Minister of Kyrgyzstan Artem Novikov took part in the work of the Board of the State Tax Service of Kyrgyzstan following the results of nine months.

He pointed out a number of shortcomings, outlined the priorities in the work of the State Tax Service for the near future.

«The reform of the Tax Service will be carried out through the digitalization of tax administration and the speedy switch of interaction with taxpayers to an electronic-remote format within the framework of the project for digitalization of tax administration — Smart Salym,» he said.

The Tax Service should move away from the image of a «punitive agency» and turn into a body that provides services to the public and business.

Artem Novikov

He added that the government would propose solutions to reduce tax audits, on outsource tax audit functions, consideration of appeals, and creation of arbitration courts for tax disputes.

«Business should be maximally protected from any possibilities of illegal actions on the part of tax officials. At the same time, the task of meeting the planned targets for tax revenues and insurance payments must be fully implemented,» Artem Novikov said.

He stressed that it was necessary to find reserves and reduce corruption risks and instructed to submit an appropriate action plan within two weeks.

The government’s first priority is to ensure budget stability.

«All state expenses should be covered only at the expense of tax revenues. Whereas external assistance should be aimed at developing the economy. This is primarily the task of the State Tax Service. It is obvious that the old approaches and methods of tax administration are not only ineffective, but also harmful for the development of entrepreneurship,» the First Deputy Prime Minister said.

Artem Novikov instructed to launch a single multifunctional taxpayer service center by the end of 2020.