On February 13, 2024, a Business Breakfast took place with the participation of the Chairman of the State Tax Service under the Ministry of Finance of the Kyrgyz Republic, Mr. Altynbek Kanybekovich Abduvapov. Representatives of companies who are members of the American Chamber of Commerce (AmCham) from various sectors such as manufacturing, construction, banking, education, healthcare, logistics, insurance, and others gathered for the event.

The purpose of the meeting was to engage in a direct dialogue with the leadership of the State Tax Service to express questions, proposals, and concerns regarding the tax environment and its impact on business activities.

Shakhida Nurkhadjyeva, General Director of “DOS Network Consultancy and Services KG,” highly appreciated the meeting with the Tax Service: “Such meetings with the Tax Service, with government agencies, are very beneficial for businesses because there is a huge gap between understanding the business sector and the government sector. We all want to interact, work together, and ensure transparency, but there is this gap in understanding, and such meetings help bridge it and make our communication smoother.”

Members and partners of the American Chamber of Commerce actively participated in discussions, asking pertinent questions to the Chairman and his deputy regarding digitization, data protection, the implementation of recent changes in the tax code, digital marking, types of insurance, cash register administration, electronic invoices, and prospects for collaboration.

The State Tax Service of the Kyrgyz Republic, under the chairmanship of Altynbek Kanybekovich Abduvapov, is making successful strides in improving administration, as detailed in the conversation with the Chairman. He answered all questions thoroughly and discussed the current efforts of the service.

In particular, Mr. Abduvapov emphasized that in 2023, the State Tax Service managed to bring a significant portion of businesses out of the “shadow,” which was a significant achievement. He also announced the introduction of a moratorium on inspections and revealed plans to transition to desk audits in the future, promising more effective interaction with entrepreneurs.

Regarding upcoming strategies, Mr. Abduvapov shared information about the intention to reduce the insurance contribution rate from 27,25% to 12-14%, which, according to him, will contribute to the improvement of income tax administration. He expressed gratitude to conscientious businesses for timely fulfillment of tax obligations and asked for understanding regarding possible glitches in the tax system, which are currently actively being addressed.

Gulnara Uskenbaeva, President of the association of suppliers (manufacturers and distributors), highly praised the Chairman’s statement on reducing the tax burden: “I was very pleased with the Chairman’s words when he said that from March of this year, there will be a significant reduction in social contributions. I think this will allow bringing the wages of employees in some industries into the light that were previously somehow hidden.”

The Chairman concluded the conversation by thanking the business community for their cooperation and support in implementing measures to strengthen tax administration in the country.

Following the Business Breakfast, most participants expressed gratitude to the organizers and expressed a wish for such meetings of this format to be held regularly.

Elena Kadyrova, the chief accountant of the company “Coca-Cola Bishkek Bottlers,” expressed gratitude for the organization of the event: “I express gratitude for the organization of this event and the opportunity to speak on the platform where you can directly ask questions to representatives of the Tax Service and receive valuable answers.”

The event organized by AmCham became not only a platform for constructive dialogue and the exchange of opinions but also a venue for suggestions from participants on various aspects of the tax system.