The tax-free system still does not work in Kyrgyzstan because of a shortage of funds in the budget. The Minister of Economy Artem Novikov announced today at a meeting of the Parliamentary Committee on Economic and Fiscal Policy.
At the meeting, MP Dastan Bekeshev suggested the government to consider the introduction of the tax- free system. He is sure that this will attract tourists to the country.
«Under the law, everyone has the right to a VAT refund, but this does not work in our country. In some countries, the return is administered not by the tax authorities themselves, but by specially hired companies. They can return money in any currency. They have an automated system that shows what percentage to return. Let’s start with this. It will be great. We invite tourists, and they can not even return VAT for purchases,» the deputy suggested.
The Economy Minister Artem Novikov admitted that the tax-free system would work only when the system of fiscalization of tax procedures is implemented and electronic invoices are introduced.
«The tax- free system does not work. We looked, whether its introduction is possible. This requires considerable funds from the budget to set up the system. The issue is under consideration so far,» concluded Artem Novikov.
- Tax-free is a system for refunding the amount of value added tax. VAT for purchases made by foreign nationals upon departure from a country where they were made is returned.
