The high single tax rate of 8 percent will lead to an increase in prices for catering services. The President of the Association of Public Catering Enterprises of Kyrgyzstan Anatoly Derevinsky announced today at a press conference at 24.kg news agency.
According to him, public catering enterprises are production workers. They try to support local manufacturers by purchasing products from them. But not everyone can provide documents. As a result, a value added tax (VAT) is born within the enterprise itself, which is not taken into account when calculating the tax base. It turns out that in addition to the high tax burden, there are also expenses for paying VAT.
«Everyone is waiting now. Nobody wants to invest, build and open new establishments. Everyone is waiting to see what the tax rate will be, whether the business will be profitable. Both designers and equipment suppliers sit idle. We already see an increase in equipment prices. Some are forced to repurpose or shut down. It turns out that disputes over taxation give rise to difficulties not only in the field of catering, but also in other industries,» Anatoly Derevinsky said.
He noted that amid a sharp increase in food prices, price of goods in the catering sector has risen a little. But the new single tax rate of 8 percent will be a heavy burden.
«Small businesses will simply stop working. Large ones will be forced to divide to stay afloat,» he concluded.
