In the sewing industry, there are officially 10-13 thousand workers, although up to 200 thousand may be employed, - Deputy Head of the State Tax Service Isabekov

Ирина Орлонская Exclusive
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The issue of informal employment continues to be relevant for the garment industry in Kyrgyzstan. The Deputy Chairman of the State Tax Service, Kubanychbek Isabekov, stated in an interview with the radio station on March 10, 2026, that concealing the true number of workers is one of the serious challenges in the sector.

“The situation with shadow wage payments in the garment industry represents a significant problem. We are aware of the existence of shadow activities, as we regularly communicate with business representatives,” he noted.

According to Isabekov, the issue of legalization becomes particularly pressing in light of increased control over exports to Russia. The Russian side insists that supplies be made exclusively within the framework of the law and with the payment of all necessary taxes.

“Control from the Russian Federation has intensified, and now they require that all taxes be paid in accordance with the legislation. When importing, it is now necessary to pay value-added tax, and we are also strengthening control over VAT payments at the border,” the deputy head of the STS reported.

He also added that entrepreneurs acknowledge that previously they often reported only part of their employees. “For example, if a person had 20 employees, they would show only two or three in the documents — this is what they themselves admitted,” Isabekov said.

The Deputy Chairman of the STS urged industry representatives not to return to past violations but to start working “from a new page.” “Discussing the past and raising old issues again will not be beneficial. We want the entire industry to start its activities with a clean slate,” he added.

According to official data, approximately 10,000 to 13,000 workers are registered in the garment industry, for whom income taxes are paid. However, according to Isabekov, there are significantly higher estimates of employment, ranging from 100,000 to 200,000 people.

“Our goal is to officially register at least 50,000 to 100,000 people. These insurance contributions will play an important role in ensuring future pension payments for citizens,” he stated.

In addition, Isabekov emphasized that the legalization of employment is important not only for tax administration but also for the social protection of workers. Even small insurance contributions can significantly affect future pensions, and increasing official employment gives the government the opportunity to raise pension payments.
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