At least 82,886 entrepreneurs working in the field of trade based on the license tax system have switched to other tax regimes. The State Tax Service of Kyrgyzstan reported.
According to its data, 65,745 of them chose a simplified taxation system based on a single tax, and 17,141 business entities, operating in Dordoi and Turataly el Bazary (Kara-Suu) shopping and entertainment centers classified as strategic objects, switched to a special tax regime.
Trading activities on the basis of a license have been abolished in the republic from July 1, 2024.
«The license tax system, introduced in the 1990s, played an important role in stimulating and developing small and medium-sized businesses in the country. However, it also led to a number of negative consequences, such as uneven distribution of tax payments and the growth of the shadow economy,» the State Tax Service noted.
The state service added that in order to improve and modernize tax administration, reduce the shadow economy, create a fair tax system and comfortable conditions for taxpayers, a decision was made to abolish the licenses in the field of trade.
