IEC proposes to simplify the licensing process for taxi drivers and couriers

Яна Орехова Economy / Exclusive
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Changes to the licensing system for certain types of activities are planned in Kyrgyzstan.

The Ministry of Economy and Commerce has put forward for discussion a draft resolution concerning the activities of taxi drivers and couriers working with digital platforms.

According to the justification, the main goal of the proposed changes is to simplify tax and licensing legislation, as well as to create conditions for self-employed citizens, including taxi drivers and couriers working through aggregators.

It is proposed to allow these citizens to obtain licenses without the need to sign an employment contract with legal entities or car fleets.

What will change

The changes concern the norms regulating the licensing of passenger transportation by cars (taxis).

According to the current regulation, an individual wishing to obtain a license must provide a copy of the employment contract with a legal entity.

The Ministry proposes to exclude this requirement so that self-employed drivers can legally obtain licenses and conduct their activities.

Economic consequences

Starting from September 1, 2025, a new taxation procedure for activities carried out through digital platform aggregators will come into effect in Kyrgyzstan.

Now all tax obligations, including income tax and social contributions, will be imposed on the tax agent — the aggregator.

Previously, self-employed individuals operated under a patent system, and by the end of 2024, revenues from this category amounted to approximately 40 million soms.

With the introduction of the new system, in just September 2025, the budget received 60 million soms, and the projected annual revenues will be around 800 million soms.

Thus, the reform significantly improved the transparency and collection of taxes.

Legal basis

According to Article 201 of the Tax Code, income received by an individual through an aggregator does not require the existence of labor relations between the participant and the aggregator.

Thus, the requirement for an employment contract during licensing contradicts tax norms.

Joint work of agencies

The issue of harmonizing legislative norms was raised in preparation for the 26th meeting of the Intergovernmental Kyrgyz-Russian Commission.

In accordance with the instruction of the President's Administration dated October 21, 2025, No. 15-11485, the authorized bodies — the State Tax Service and the Ministry of Internal Affairs — held a meeting and concluded that it is necessary to make changes to the existing Regulation.

Introduction of licensing

According to the Cabinet of Ministers' resolution, mandatory licensing for taxi drivers will begin on December 1, 2025.

In this regard, the Ministry of Economy considers it important to eliminate legal discrepancies in advance to ensure the successful launch of the new procedure and avoid potential losses in the budget.
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