Volume of Kyrgyzstan’s shadow economy reaches 250 billion soms

The volume of the shadow economy covers 50 percent of the market of Kyrgyzstan and reaches 250 billion soms. The deputy of Parliament Akylbek Japarov said at the joint session of the parliamentary committees on the budget and finance, economic and fiscal policy.

At the same time, the National Statistical Committee estimates the rate at 23 percent. But according to the data of international organizations, the level of shadow economy as of today is 50 percent.

It turns out that the shadow business produces goods and services for 250 billion soms, and the budget loses 70 billion soms because of non-payment of taxes.

Akylbek Japarov

Akylbek Japarov asked what work was being done in this direction. The Vice Prime Minister Oleg Pankratov replied that the government was taking measures to reduce the shadow business.

«A commission was set up to switch the business to non-cash payments. We had problems with switching to non-cash payments in the regions because ATMs and POS terminals were not enough. Equipment is delivered today. In 2016, there were delivered 380 ATMs and 2,900 POS terminals. All state employees switched to non-cash form of payment. We are actively introducing our national payment system and Elcart card," Oleg Pankratov said.