In Kyrgyzstan, an unexpected turn has occurred in the payment sector: buyers, who are accustomed to the convenience of paying through electronic wallets such as O!Money, MegaPay, and "ELSOM," are now faced with the requirement to pay exclusively in cash. This became evident during a visit by a correspondent from VB.KG to several city markets. Plans for the digitalization of the country's economy seem to have hit serious obstacles, confirming the rule of "one step forward, two steps back."
In fact, the reason for this situation is not technical problems but rather strict measures introduced by the State Tax Service (GNS). Since 2026, the rules concerning businesses have changed significantly: it is now prohibited to use electronic wallets registered to individuals or their relatives. Large fines are now imposed for transfers to personal accounts of sellers—20,000 soms for individuals and 65,000 soms for legal entities. Additionally, tax authorities have been granted the right to directly deduct debts from electronic accounts.
Many entrepreneurs have long operated in the "gray zone," accepting payments to their personal accounts. The GNS views this as "going underground" and concealing real income. The state’s position remains firm: every QR code or wallet must be registered to an individual entrepreneur or legal entity. To ensure correct tax payments, business owners must now use special codes from their personal account on Salyk.kg.
The tax service has already begun active inspections. Monitoring has shown that many traders continue to use the personal accounts of their relatives for transactions. The GNS warns that the use of wallets registered to "third parties" is unacceptable, as it not only deprives the budget of taxes but also creates unequal conditions for honest entrepreneurs.
Meanwhile, while the government tries to tackle the shadow economy, ordinary citizens are suffering from the new rules. Instead of convenient electronic transactions, they are once again forced to use cash.
Whether this "cash period" will be a temporary hardship or if we will remain in lines at ATMs for a long time depends on how quickly small businesses can adapt to the new requirements and legalize their digital transfers. One thing is clear at this point: the drive for digitalization has collided with the harsh realities of tax control.
