Kyrgyzstan has adopted a law introducing major changes to tax regulation. The document assigns new responsibilities to market and shopping center administrations, expands the powers of tax authorities, and establishes a Single Tax Account mechanism.
According to the decree, market administrations are now responsible for monitoring tax compliance by all entrepreneurs operating within their territories.
Effectively, tax inspectorate functions are being partially transferred to the bazaars themselves, creating additional risks of pressure and conflicts of interest.
According to experts, this decision could lead to "double control«—by both the administration and the Tax Service. This will be particularly acute for small traders and tenants, who are already facing rising rent and utility costs.
Furthermore, the law expands the powers of the State Tax Service.
Debt collection is now possible not only from bank accounts, but also from e-wallets and payment systems.
To this end, the concept of a tax payment order is being introduced—a document that is automatically sent to all banks and e-money operators without prior account verification. This means that a taxpayer’s funds can be frozen within just 24 hours.
Other changes include:
- Non-cash tax payments, including digital som payments, are now permitted;
- A single tax payment through a single account is being introduced;
- The statute of limitations for penalties is being equalized to the period of the arrears;
- Tax benefits and payment installments are now processed under new, stricter rules.
The Cabinet of Ministers explains the reforms as an effort to «increase transparency and tax collection.» However, the business community is already expressing concern: now, any error or delay can lead to the immediate freezing of funds.
«The state is strengthening controls under the pretext of digitalization, but in reality, it is introducing a totalitarian fiscal system where every business is under complete surveillance,» one of representatives of the retail sector said.
The clause regarding markets is particularly alarming: administrations are obligated to monitor tenants’ tax payments, but lack clear instructions and legal guarantees. This creates fertile ground for arbitrary actions and corruption risks.
