To change this trend and stimulate the processing of gold within the country, the State Tax Service (STS) is launching a series of significant support measures for local jewelers.
According to Isabekov, by processing even a small portion of the gold mined, Kyrgyzstan can fully meet its domestic needs and even reach a new level of exports. "Our jewelry sector has enormous potential, and it needs to be developed," emphasized the Deputy Chairman of the STS.
Working in the Shadow Economy
One of the main problems for the development of the sector has been its informality. Many jewelers operated in the "shadows".Some entrepreneurs admitted that they were tired of pressure from criminal structures and were ready to legalize their business by paying taxes, noted Isabekov.
Legalization Worth 17 Billion
To bring the sector out of the shadows, a legalization campaign has been initiated, which has already taken on significant proportions. Currently, more than 1,600 documents have been processed through the electronic invoice system, allowing for the legalization of jewelry assets worth nearly 17 billion soms. At the same time, the tax service has significantly reduced the cost of state hallmarking of products from 34 to 10 soms per unit.State Support for Jewelers
Now the government is moving to the stage of financial support. Kubanychbek Isabekov reported that a project for providing jewelers with preferential loans at 6% per annum is currently awaiting signing in the Cabinet of Ministers. Additionally, by the president's directive, a 2% discount on gold for domestic producers when purchasing from the state has been resolved, while in Uzbekistan, such a discount is only 1%.Moreover, jewelers will be able to purchase precious metal in installments, which will help address the issue of insufficient working capital. A document is also expected to be adopted that will facilitate the import of equipment, raw materials, and chemical reagents necessary for production but not produced in Kyrgyzstan. These measures aim to transform small workshops into modern competitive enterprises.
Expected Multiplicative Effect
The state expects a multiplicative effect from these initiatives. The idea is that by providing favorable conditions today, the budget can receive much more tomorrow. "We provide the producer with gold at a discount and a low loan; they create products with high added value, and the taxes from their sale return to the budget multiple times," explained Isabekov.At the same time, the tax service requires full transparency from the sector. Starting March 1, control over the turnover of jewelry will be strengthened: each item on display must have supporting documents. Kubanychbek Isabekov noted that the STS has previously agreed on all conditions with jewelers to avoid misunderstandings in the future and ensure stable growth in the industry, creating official jobs.
