A roundtable discussion on tax policy and administration was held in Bishkek, organized by the International Business Council of Kyrgyzstan (IBC). Representatives of businesses and government agencies discussed the growing fiscal burden and penalty calculation rules.
IBC Executive Director Askar Sydykov and Deputy Minister of Economy and Commerce Iskender Asylkulov noted that the country’s entrepreneurs need a predictable environment.
Small and medium-sized businesses regularly seek advice due to difficulties interpreting the Tax Code.
The event emphasized the need to develop balanced solutions that will ensure audit transparency and reduce regulatory risks for investors.
Meeting participants addressed the issue of interaction between fiscal authorities and the private sector. Issues affecting the country’s investment attractiveness were also discussed:
- tax audit procedures and penalty calculation;
- debt repayment mechanisms;
- application of Article 139 of the Tax Code (market prices);
- taxation of digital services and transactions with foreign suppliers;
- excise policy and proposals for improving regulation in specific sectors.
Participants noted a sharp increase in additional assessments and penalties. According to IBC analysis, the amount of accrued penalties in 2024 increased more than tenfold compared to 2020, reaching 25.3 billion soms.
For the first eight months of 2025, this figure amounted to more than 33.8 billion soms—a 13-fold increase.
The amount of additional taxes assessed in 2024 totaled 29.3 billion soms, which is twice the level recorded four years earlier.
Attention was drawn to the experience and practices of Central Asian countries, as well as to global approaches to tax regulation.
