“We have repeatedly made changes to the Tax Code to improve tax administration. In particular, we have revised the use of electronic waybills (EWT), which are now used only in three areas: retail sale of tobacco products, alcoholic beverages, and petroleum products,” he noted.
In addition, the patent taxation system for small and medium-sized enterprises has been modernized. This has given entrepreneurs the opportunity to choose the most suitable tax regime, significantly simplifying business operations in various markets and small retail outlets.
At the beginning of the year, an analytical group was established in the central office of the State Tax Service, which focuses on identifying large tax evasion schemes. Joint efforts with law enforcement agencies have helped strengthen the fight against the shadow economy and corruption.
“According to estimates by international observers, the level of the shadow economy in Kyrgyzstan in 2020-2021 was about 40 percent. To date, this figure has decreased to 20 percent, which means that over the past 3-4 years we have managed to halve the shadow economy, transferring a significant portion of businesses into the legal field,” Rakhmanov added.
He also emphasized that supporting and developing small and medium-sized businesses remains a key focus of state tax policy.
