According to experts, these changes could negatively impact the economy, investment climate, and the development of key sectors, including the strategically important field of telecommunications.
The Cabinet aims to obtain permission to regulate prices for works and services. In particular, it wants to establish the right to introduce state price regulation for a period of up to 90 calendar days per year, with the possibility of extending this period if necessary. The following are subject to regulation:
- socially significant goods (works, services) of both legal entities and individuals, the list of which will be determined by the government;
- socially significant goods (works, services) of entities holding a dominant position in the market.
The International Business Council characterized these amendments as excessive and risky, emphasizing that limiting profitability to 25% makes Kyrgyzstan less attractive to investors, especially in capital-intensive sectors such as telecommunications, energy, and construction. High-tech companies require a higher margin level for return on investment and further development.
Possible price regulation may affect mobile operators, which contradicts the country's digitalization strategy and could lead to a decline in service quality and a slowdown in the implementation of new technologies.
Moreover, the IBC pointed out that the proposed amendments contradict Article 41 of the Constitution, which guarantees economic freedom, as well as the National Development Program until 2030, which implies limiting state intervention in business.
The proposed mechanism would allow the government to include any services in the list of regulated services with virtually no restrictions, creating legal uncertainty and opening the door for arbitrary decisions.
“We believe that state policy aimed at unjustifiably restoring direct regulation methods concerning dominant companies, especially in the mobile communications sector, contradicts the fundamental principles of the dominance institution,” the business council stated in its appeal.
Representatives of the business community insist on maintaining the current version of the Law "On Pricing" and the inadmissibility of excluding part 5 of Article 6, which prohibits price regulation for other services.
The International Business Council hopes that the ministers and deputies of the Jogorku Kenesh will take into account the opinion of the business community.
