Dairy Association of Kyrgyzstan asks to temporarily stop tax inspections of enterprises engaged in the processing of milk and dairy products. Its appeal says.
Business notes that today’s situation in the market of dairy products is a crisis. It causes serious difficulties for many milk processing enterprises in the country. Due to the introduction of a ban on the import of milk and dairy products from Kyrgyzstan to Russia, companies faced the problem of overstocked warehouses and a decrease in the purchase price for raw materials from manufacturers.
«Unfortunately, neighboring markets, including Uzbekistan, also represent difficulties for Kyrgyz dairy producers, especially in the context of competition with Belarusian goods. The Chinese market, where only powdered milk and cheese can be exported, is also not conducive to resolving the current situation. The economic losses in the dairy sector are becoming more and more significant, and some enterprises have already faced restrictions on the acceptance of milk and a decrease in the purchase price from farmers. In such a difficult period for the dairy sector, tax inspections only exacerbate the situation. They have a negative impact on the production of dairy products, as well as on the investment climate in Kyrgyzstan,» the appeal says.
Some enterprises are already forced to stop acceptance of milk or reduce it. This situation becomes inevitable in the face of increasing demand and declining profits. This negatively affects the financial position of enterprises, their ability to pay wages to employees, as well as tax deductions to the budget. Social tension may also arise. Already in April, farmers expressed dissatisfaction with the purchase prices for raw milk. If business stops accepting raw milk due to inspections, there will be a surplus of raw milk on the market, which will lead to a further drop in the market price.
«We call on the tax authorities of the republic to understand the current situation in the dairy sector and temporarily suspend tax audits of enterprises for the processing of milk and dairy products. This will allow us to focus on overcoming the current difficulties and the gradual restoration of production. We support the need to comply with tax laws and combat violations. But the resources and efforts of the tax authorities should be focused on supporting and developing the dairy sector, and not on creating additional problems for enterprises,» entrepreneurs say.
The Cabinet of Ministers and relevant authorities are urged to consider the request of the Dairy Association of Kyrgyzstan to temporarily suspend tax inspections and work together to find solutions to support the dairy sector.
«We are confident that only through joint efforts and understanding we can overcome the current difficulties and ensure the sustainable development of the dairy industry in the country. We are ready for dialogue and cooperation with the government and tax authorities to develop effective measures to support the dairy sector. We believe in the prospects of the industry and its importance for the economy of the republic and call for joint actions to ensure its development,» the Association concluded.
