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Kyrgyzstan to repeatedly revise its Tax Code

The main task for now is to radically change approaches in the country’s economic life. Acting Prime Minister of Kyrgyzstan, Artem Novikov, said at the first meeting of the Council for Economic Reforms under the Government.

«We can no longer afford development in an extensive way. It is necessary to form paths of intensive development. There is no need to be afraid of changes, we need to keep up with the times. Today, the state system is perceived not as an instrument of support, but as a system of barriers and obstacles. It is necessary to change the image of state power, abandon unnecessary functions, eradicate bureaucratic red taping and ensure an equal competitive environment for business. In the coming years, work on ensuring employment of the population should be at the forefront,» Artem Novikov said.

He noted the priority measures and directions of reforms for subsequent legislative advancement. This is interaction of business with law enforcement (judicial) and inspection bodies, reforming of the fiscal system, power industry reform and the development of the construction industry.

«Analysis of the Tax Code showed the instability and inconsistency of the changes and additions introduced, the presence of complaints from taxpayers. The time has come to develop and adopt a new Tax Code. The new edition should abolish the old approaches and methods of tax administration, it should become a law of direct action, easy to use and understandable for the taxpayer. It is necessary to combine all taxes for business and social security contributions in one document. Therefore, the created interdepartmental working group needs to prepare a new version of the Code and a package of relevant regulations, discussing this package with the business community, hold its public discussion and submit it to the Council for Economic Reforms for consideration,» Artem Novikov stressed.

Officials also noted the critical role of local governments.

«It is important to understand that the successful development of local self-government and local entrepreneurship is an important factor in creation of jobs, increasing incomes of the population, and development of infrastructure. Not a single investor today can get land for implementation of an investment project. No communications, no permits are provided. In these conditions, we cannot talk about development of investment potential. Considering the aforementioned, we must propose to develop incentive mechanisms to support business, develop appropriate support infrastructure, formulate proposals and recommendations on the location and type of enterprises, assist in cooperation of large enterprises with small ones and others,» the acting Prime Minister said.

Artem Novikov noted that entrepreneurs and the expert community should take an active part in the development of decisions important for the development of the country for the progressive development of the economy, its innovative reform. The government, in its turn, intends to maintain maximally lively and results-oriented dialogue with entrepreneurs and the expert community.