Mandatory payments for employees in Kyrgyzstan’s garment industry have been reduced, Deputy Chairman of the State Tax Service Kubanychbek Ysabekov said on the air of Birinchi Radio.
According to him, the main tax burden for garment workshops had previously been linked not to the unified tax rate but to payments for employees, including personal income tax and social insurance contributions. Depending on the category of workers, these payments ranged from 5,500 to 9,500 soms.
«When we were told that these payments were too high, we combined all categories into one and reduced the payment to 2,500 soms. As a result, the payments have been reduced from three to four times. After that, representatives of the industry said they were ready to operate transparently and officially register their workers,» Kubanychbek Ysabekov said.
He recalled that in 2022 a unified tax rate of 0.25 percent was introduced for the garment industry, which is the lowest rate for the manufacturing sector.
According to the official, the rate for other manufacturing businesses is significantly higher: 4 percent for cash payments and 2 percent for non-cash payments.
In addition, some small businesses can still operate under the license system. Small workshops with 10 sewing machines pay 2,000 soms, while each additional 10 machines are taxed at 1,000 soms. At the same time, turnover under each license must not exceed 8 million soms.
Kubanychbek Ysabekov emphasized that the garment industry has significant social importance, as it employs thousands of people. According to him, the government is interested in creating conditions for businesses to operate legally and sustainably.
