Despite the fact that, according to various estimates, hundreds of thousands of people are employed in garment industry of Kyrgyzstan, only about 9,000 workers are officially registered and pay taxes and insurance premiums. Kubanychbek Isabekov, Deputy Chairman of the Tax Service, said on Birinchi Radio.
He stated that the time has come to reduce the shadow economy in the garment industry and transition to open business practices.
The official noted that, according to official data, only about 9,000 people currently pay income tax and insurance premiums—that’s the number of workers considered officially employed in the industry.
He emphasized that the ongoing reforms are not aimed at increasing tax rates. Their main goal is to bring entrepreneurs out of the shadow economy and expand the tax base.
Furthermore, Kubanychbek Isabekov pointed to systemic problems in the garment industry, particularly difficulties with exporting products. According to him, entrepreneurs face certain barriers at the borders with Russia and Kazakhstan.
