Strengthened tax procedures and digitalization have contributed to a reduction in the shadow economy and ensured the overfulfillment of tax revenue plans. Deputy Chairman of the State Tax Service of Kyrgyzstan Mirlan Rakhmanov said in an interview with Ala-Too LIVE program summarizing the results of the year.
«First, we have introduced several new amendments to the Tax Code specifically to improve the administration of tax legislation. Specifically, approaches to the use of electronic consignment notes were revised. The electronic consignment notes system was retained for only three types of activities: the retail sale of tobacco products, alcoholic beverages, and fuel and lubricants,» Mirlan Rakhmanov noted.
Furthermore, the license taxation system was expanded and improved for small and medium-sized businesses. Entrepreneurs are now given the right to choose the most convenient tax regime, significantly facilitating operations in markets, mini-markets, and small retail outlets.
Also at the beginning of the year, an analytical group was established within the State Tax Service’s Central Office to identify large-scale tax evasion schemes. Joint work with law enforcement agencies has strengthened the fight against the shadow economy and corruption.
«According to international observers, the shadow economy in Kyrgyzstan reached approximately 40 percent in 2020-2021. Today, this figure has been reduced to 20 percent. Thus, over the past 3-4 years, we have managed to halve the shadow economy, bringing a significant portion of businesses into the legal realm,» Mirlan Rakhmanov added.
He reiterated that the development and support of small and medium-sized businesses remains a priority of the state tax policy.
