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Budget of Kyrgyzstan looses more than 1 billion soms due to cancellation of VAT

Due to the cancellation of VAT on flour, the budget of Kyrgyzstan lost more than 1 billion soms for two years. Deputy Minister of Economics Bakkeldi Tyumenbaev said today at the meeting of the parliament.

According to him, initially the agency offered to abolish VAT only on grain imports, but during the discussion, a proposal was made to abolish VAT on flour.

For 2014, the shortfall was 635 million soms, and in 2015 — 500 million soms. Therefore, we have raised the initiative to return the VAT on flour.

Bakkeldi Tyumenbaev

However, the deputies are not ready to admit that the budget suffered losses because of their decision. «The government should defend its position better. If the IMF recommended you to cancel this preference in March, why are we considering the issue just now? You should have brought a bill in April,» MP Akylbek Zhaparov said.

Minister of Economics Artem Novikov replied that the bill was submitted to the parliament on January 11, 2017.