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Temporary moratorium on business inspections to be imposed from January 1

The President of Kyrgyzstan signed a decree on imposing a temporary ban (moratorium) on inspections of business entities until December 31, 2023.

The purpose of the document is to create favorable conditions for development of private entrepreneurship, improve the investment climate, support the economic activities of business entities, ensure their legal protection, prevent unreasonable interference in the activities of business entities, increase responsibility and ensure openness of the activities of law enforcement agencies and regulatory authorities when inspecting business entities.

«There are still problems in the field of state regulation of entrepreneurial activity that negatively affect the development of entrepreneurship, business and contribute to a decrease in the level of business activity of the population, investors, including foreign investors. One of these problems is a large number of inspections and abuse of power by law enforcement agencies, tax and regulatory authorities, which are often complained of by representatives of small, medium and large businesses, including commercial banks,» commentary to the decree says.

Most often, these are unreasonable, duplicating or even illegal checks, there are facts of extortion.

According to the decree, the Cabinet of Ministers is instructed to impose a temporary ban (moratorium) on inspections of small, medium and large businesses, as well as commercial banks, conducted by law enforcement agencies and authorized bodies that have the right to conduct inspections of business entities, for the period from January 1, 2023 to December 31, 2023.

It is established that the unreasonable scheduling of inspections by officials of law enforcement agencies, authorized bodies that have the right to conduct inspections of business entities, as well as inspections carried out using their official powers out of mercenary or other personal interest, which caused significant harm to the rights and legitimate interests of the entities being inspected, or state or public interests are considered as improper performance of official duties and entail bringing officials to disciplinary responsibility, up to and including dismissal from their positions.

The Cabinet of Ministers, in accordance with the established procedure, together with business associations, authorized bodies entitled to conduct inspections of business entities, heads of local state administrations, mayors of the cities of Bishkek and Osh, need to conduct a broad information campaign for business communities on the introduction of a moratorium and provision of advisory assistance to business entities on issues of compliance with the requirements of the legislation of the Kyrgyz Republic.

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