History of the Tax Service of the Kyrgyz Republic

The strength of the state lies in its budget. This postulate is indisputable. The main task of tax officials is to ensure the state budget and prevent its losses.

To ensure the functioning of any state, budgetary resources are necessary. The wealthier the state, the better its citizens live. Resources are needed both for economic development and for the implementation of social programs. Every state makes every effort to develop a full-fledged and quality tax collection service. Our country is no exception.
In the early days of the tax service, tax officials traveled to villages on horseback or walked through yards to replenish the country's treasury through tax revenues. Nowadays, following the example of advanced global practices, tax authorities are equipped with modern equipment and automated programs.

The tax service of the republic, as an independent agency, was established in 1990 by a resolution of the Government of the Kyrgyz Republic, marking the starting point in the history of the tax service in our country.

The personnel of the tax service and its structural divisions were formed from financiers who already had experience in ensuring budget revenue and practical control activities. They made a significant contribution to the formation of the tax service's foundation, principles of relations with taxpayers, and the determination of inspectors' social status.

In 1994, the tax service was placed under the Ministry of Finance as the State Tax Inspectorate under the Ministry of Finance of the Kyrgyz Republic.
In 2002, the Revenue Committee was established under the Ministry of Finance, which included the State Tax Inspectorate and the State Customs Inspectorate.

In 2005, the State Tax Inspectorate was transferred to the direct subordination of the Government of the Kyrgyz Republic.

In 2007, the State Tax Inspectorate under the Government of the Kyrgyz Republic was transformed into the State Committee of the Kyrgyz Republic for Taxes and Levies.

In 2009, the State Committee of the Kyrgyz Republic for Taxes and Levies was transformed into the State Tax Service under the Government of the Kyrgyz Republic.

Today, the tax service of the Kyrgyz Republic addresses the most important task – replenishing the state budget while creating conditions for fair taxation. It is encouraging that tax collection is constantly increasing. If in 1990, 11.3 million soms were collected, in 1995, 2.4 billion soms, in 2000, 5.5 billion soms, and in 2005, 8.7 billion soms. In 2010, 24.2 billion soms were collected.

The tax service faces important tasks – ensuring revenue growth in the budget on one hand, and reducing the tax burden on the other. This is only possible with radical changes in the management system of the tax system and new approaches to tax administration.

Since January 1, 2009, a new edition of the Tax Code of the Kyrgyz Republic was introduced. According to the new Code, the number of taxes was reduced from 16 types to 8. The VAT rate was lowered from 20% to 12%. The rates for corporate tax and personal income tax were maintained at 10%. The tax rate for non-residents was reduced from 30% to 10%. A sales tax, tax on special funds, tax on subsoil use, and property tax were introduced. Special tax regimes such as "Tax Contract" and "Free Economic Zones" were introduced.

Currently, in order to eliminate corruption within the tax service, many departments of the State Tax Service operate on the principle of a "single window," significantly reducing taxpayer contacts with tax service employees.
Direct contacts are also minimized by providing tax reporting in electronic form via the Internet.

Tax officials in Kyrgyzstan hold conscientious taxpayers in high regard, as they contribute to the revenue side of the budget and strictly adhere to the tax legislation of the republic.

Employees of the tax service, understanding and fulfilling their main task – ensuring budget revenues, also strive to lead an active life. They participate in various events conducted within the framework of the socio-economic development of the country, with significant attention given to sports and mass events.

The tax service is the government body that allows the country to develop dynamically and improve the economic well-being of the people of Kyrgyzstan through the taxes collected in the state budget!