The losses of the budget can reach 480 million soms in 2017 because of the shadow import, the Union of Entrepreneurs of Kyrgyzstan stated.
Millers believe that the budget loses its revenues not because of tax benefits and allowances, but because of the illegal import of flour. Monthly losses are estimated at 40 million soms.
The budget losses from unaccounted flour import in 2014 amounted to 545 million soms, in 2015 — 762 million, in 2016 — 929 million, for three months of 2017 — 189 million soms.
«If to formalize all the flour that enters the republic illegally and pay VAT at 12 percent of the cost for each kilogram, the budget would have received more than 900 million soms. Up to date, domestic flour millers produce at best a quarter of annual consumption. Compared to 2014, production fell by 73 percent. I think that the government and deputies shouldn’t think about introducing VAT, but about protecting the market from the illegal import of flour. We must preserve our own production in order to take care, in particular, of the food security of the country," chairman of the Committee of Millers Rustam Zhunushov said.
