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Initiatives of officials give rise to chaos and corruption

«The tax code of Kyrgyzstan is incomprehensible to entrepreneurs. The changes that are being made to it now only create chaos and increase corruption,» the Head of the Suppliers Association Gulnara Uskenbaeva said at a meeting with the country’s president today.

According to her, Kyrgyzstan has low tax rates, but complex and non-competitive tax rules. Business, both internal and external, needs clear rules, which would have operated for 5-10 years. Deputies supported entrepreneurs, decided to create a concept of fiscal policy, but the Ministry of Economy reduced the tax rules to three years. Business believes that this is an extremely short time.

«We need a new Tax Code. It is necessary to simplify it. We need to take a course to simplify tax procedures. The changes that are being made now only complicate the business. Small and medium business does not understand the Tax Code, it can not read it, an expert is needed. As a result, there are violations and corruption. Revolutionary solutions are needed,» Gulnara Uskenbaeva believes.

She also criticized the mechanism for submitting reports on social contributions. Entrepreneurs ask to submit the reports on the Social Fund to the Tax Service, and that it should be one report. But the officials do not hear the small business.

«These are two types of taxes that are related to wages. What is happening now? Just an additional section on social reports is added to the Tax Code, how they will be checked and so on. It turns out that entrepreneurs used to go to two state bodies with almost identical reports, now they will go to one state agency twice. It is doubtful simplification,» Gulnara Uskenbaeva said.