The city of Osh may retain 50% of the sales tax, - head of the State Tax Service

Наталья Маркова Economy / Exclusive
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Shykmamatov once again emphasized the importance of decentralizing the sales tax (NST) during a meeting with business representatives in Osh on March 17.

The first mention of this proposal occurred on August 28, 2025, when Shykmamatov visited the new market in Osh and suggested to Mayor Jenishbek Toktorbaev to initiate the allocation of half of the NST revenues for the city budget.

As of today, tax revenues in Osh amount to:

- NST – 2 billion 163 million soms;

- VAT – 2 billion 162 million soms.

Shykmamatov stated that if at least half of this amount (around 2 billion soms) were directed towards the city's development, it would provide a significant boost to improving infrastructure.

Shykmamatov emphasizes that the redistribution of taxes remains an important topic, and for its successful implementation, active cooperation with municipal authorities is necessary. “We discussed the possibility of launching a pilot project that would allow 50% of the NST to be transferred to the local budget, which should increase the interest of city authorities in effective tax collection. The city hall was supposed to develop the relevant guidelines, but this has not been done. I do not intend to blame anyone, but now Janar myrza must prepare a project for me to sign,” he added.

According to the chairman of the State Tax Service, decentralization will allow local authorities to transition from being passive budget recipients to active participants in the economic process, which will contribute to the legalization of business.

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