On draft law on amendments to the Code on non-tax revenues in the first reading
On 3 November draft law of the Kyrgyz Republic “On Amendments to the Code of the Kyrgyz Republic on non-tax revenues” was considered in the first reading.
The draft law was presented by Deputy Minister of Digital Development Talant Kalykov. As he noted, this draft law is designed to exempt the authorized state body on communication from payment of state duty, on claims directly related to the performance of functions and powers.
“At the moment the debt of communication providers, Internet providers to the authorized state body is more than 40 million KGS, to recover them we have to go to court and pay the state duty of 10% of the recovered amount,” – said T. Kalykov.
The draft law was sent for voting in the first reading.
On draft law “On amendments to the Law of the Kyrgyz Republic “On Competition”
On 3 November deputies considered the draft law “On Amendments to the Law of the Kyrgyz Republic “On Competition”.
This was an initiative of the Cabinet of Ministers Decree No. 183 dated 4 May 2021. Bekbolot Aliev, Deputy Minister of Economy and Commerce, noted that the draft law is designed to prevent restrictions of competition in commodity markets. It will also prevent monopolization of the market. This will be guaranteed by providing advantages for state enterprises and establishment of business entities, whose participants are affiliated persons or group of persons, which contribute to the creation of favorable conditions for entrepreneurship.
The draft law has been submitted for a vote in the first reading.
On draft law on ratification of the Agreement on the principles of tax policy in them field of excise taxes on tobacco products of the EAEU member states
On 3 November deputies considered a draft law “On ratification of the Agreement on tax policy principles in the field of excise taxes on tobacco products of the member states of the Eurasian Economic Union, dated 19 December 2019 in St. Petersburg”. This draft law was considered in the first reading.
Bekbolot Aliyev, Deputy Minister of Economy and Commerce, proposed such an initiative.
The purpose and objective of this draft law is implementation of the domestic procedures required for entry into force of the Agreement on tax policy principles in the field of excise taxes on tobacco products of the member states of the Eurasian Economic Union, signed on December 19, 2019 in the city of St. Petersburg.
The Agreement is aimed at providing conditions for operating the tobacco market products within the Union through harmonization of excise duty rates on tobacco products sold in the territories of member states. And determines an order (including the basic principles and measures) of harmonization of excise duty rates on cigarettes classified in subitem 2402 20 of the single Commodity Nomenclature of Foreign Economic Activities of the Eurasian Economic Union.
The drat law has been sent for a vote in the first reading.
On consideration of draft law in the tax system
On 30 November deputies of the Committee on Economic and Fiscal Policy of the Jogorku Kenesh considered the second reading of the draft Tax Code of the Kyrgyz Republic and the draft law “On enactment of the Tax Code of the Kyrgyz Republic”, proposed by the Chairman of the Cabinet of Ministers of the Kyrgyz Republic – Head of the Presidential Administration of the Kyrgyz Republic A. Japarov.
Minister of Economy and Commerce of the Kyrgyz Republic Daniyar Amangeldiyev delivered presentation on draft laws. The new draft Tax Code aims to bring the tax legislation in line with current economic conditions, the digitalization of tax procedures, creating a level playing field for business and reducing the shadow economy.
During the discussion, deputy Dastan Bekeshev noted that under Articles 7-16 of the Tax Code is granted with an authority to conduct investigative activities. It could create a risk of transforming the tax authorities in a punitive law enforcement agency.
Minister of Economy and Commerce Daniyar Amangeldiev explained that the voiced proposal is not considered. As the transfer of the tax authorities of the preliminary examination and investigation of tax crimes is the best solution, agreed with the relevant authorities.
Considering the discussion, the draft laws were approved in the second reading.
It’s worth mentioning that the new version of the Tax Code will take effect since January 1, 2022.
On draft law on internal trade
Since 3 November, the Ministry of Economy and Finance of the Kyrgyz Republic submits for public consideration draft Law of the Kyrgyz Republic “On Amendments to the Law of the Kyrgyz Republic “On Amendments to the Law of the Kyrgyz Republic “On Internal Trade in the Kyrgyz Republic”.
The draft law was drafted by the interagency task force on the inventory of the legislation of the Kyrgyz Republic trade and technical regulation field.
The draft law proposes to stipulate a subjective scope of the Law of then Kyrgyz Republic “On internal trade in the Kyrgyz Republic”.
It was also proposed to revise the general provisions on:
– the purposes and subject matter of regulation;
– the main terms used in the law;
– principles of state regulation.
On draft law “On recognition of some legislative acts of the Kyrgyz Republic invalid”
The Ministry of Justice of the Kyrgyz Republic submits for public discussion the draft law “On Recognition of some legislative acts of the Kyrgyz Republic invalid” since 3 November.
In order to implement the procedure of large-scale inventory the inter-agency task force was formed by the Order of the Government of the Kyrgyz Republic dated March 10, 2021 No. 55-p.
To determine the number of laws to be inventoried, the Ministry of Justice of the Kyrgyz Republic conducted an analysis of legislation from 1990 to 2020 and identified a list of 356 laws. To organize the working process of inventory, by the order of the Ministry of Justice of the Kyrgyz Republic on April 15, 2021 No. 57, 15 sectoral subgroups were formed. These subgroups include representatives of state
bodies, civil society and independent experts.
The analysis of the laws was based on the Methodology of the legislation inventory of the Kyrgyz Republic, which was approved by the above-mentioned order of the Ministry of Justice of the Kyrgyz Republic.
The following lists of laws were formed based on the results of the assessment for compliance with the criteria:
1) a list of laws requiring amendment;
2) a list of laws proposed to be recognized as invalid after the adoption of new laws’
3) a list of laws proposed to be recognized as invalid;
4) a list of laws proposed to remain in effect.
At the meeting of the inter-agency taskforce on October 12, 2021 assessments to 125 laws and their distribution in accordance with the specified lists were approved. Therefore, based on these approved lists, 9 laws are to be declared invalid:
1) Law of the Kyrgyz Republic “On Oil and Gas”;
2) Law of the Kyrgyz Republic “On Coal”;
3)Law of the Kyrgyz Republic “On Establishing Tariffs for Irrigation Water Supply Services for 1999”;
4)Law of the Kyrgyz Republic “On Mountain Territories of the Kyrgyz Republic”;
5)Law of the Kyrgyz Republic “On State Procurement of Agricultural Products to Support Agricultural Producers”;
6)Law of the Kyrgyz Republic “On state support of agricultural commodity producers for field works”;
7)Law of the Kyrgyz Republic “On provision of state support to legal entities and individuals permanently residing and carrying out economic activities in settlements located in mountainous and remote areas of the Kyrgyz Republic”;
8) Law of the Kyrgyz Republic “On the Customs Tariff of the Kyrgyz Republic”;
9) Law of the Kyrgyz Republic “On the Commodity Nomenclature of Foreign Economic Activity of the Kyrgyz Republic”.
Therefore, the draft law proposes to declare these laws invalid.
On supplementing a list of activities subject to licensing
On 27 October the Law of the Kyrgyz Republic On Amendments to some legislative acts of the Kyrgyz Republic (Laws of the Kyrgyz Republic “On Electricity and Postal Communication”, “On Licensing and Permitting System in the Kyrgyz Republic” No. 124 was adopted.
In accordance with law list of activities subject to licensing was supplemented. Now the activities in the field of identification, authenticity of the international unique identification code of active and imported into the territory of the Kyrgyz Republic mobile communication devices, as well as devices used for data transmission are subject to licensing.
The law enters into force after fifteen days from the date of its official publication.
On establishing status, functions, rights, and duties of the “Bishkek” International Financial Center
The Ministry of Economy and Finance of the Kyrgyz Republic submitted for public consideration the Constitutional Law of the Kyrgyz Republic “On the “Bishkek” International Financial Center.”
The draft Constitutional Law of the Kyrgyz Republic “On the “Bishkek” International Financial Center” establishes the status, functions, rights and obligations, official language, bodies of the “Bishkek” International Financial Center (the Center), in addition, the current law, visa, tax regime for residents of the Center. One of the features of the Center is its legal status, particularly the territory will have an autonomous jurisdiction using English law. The official language of the Center will be English. One of the motivating factors for the participants of the Center is the exemption of Center’s residents from tax on income received from the provision of financial services. Also, foreigners who are employees of a resident or a body of the Center are exempt from income tax in the Center under an employment contract.
Business is offered a comprehensive legal regime for attracting, making and protecting investments, based on the most business-friendly law, based on the principles, rules and precedents of the law of England and Wales and/or the standards of the world’s leading financial centers.
Draft Constitutional Law “On Amendments to certain legislative Acts of the Kyrgyz Republic on the activities of the “Bishkek” International Financial Center provides for amendments to a number of legal acts of the Kyrgyz Republic.
On signing the Decree “On certain issues of the activities of governmental bodies”
On November 6, the President of the Kyrgyz Republic Sadyr Japarov signed a decree “On some issues of activities of state bodies.
To optimize the activities of state bodies it is decided to establish the following governmental bodies under the Cabinet of Ministers of the Kyrgyz Republic:
-State agency for Civil Service and Local Self-Government on the basis of the State Personnel Service of the Kyrgyz Republic and the State Agency for Regional Development under the Ministry of Agriculture of the Kyrgyz Republic;
-Social fund of the Kyrgyz Republic based on the Social Fund under the Ministry of Health of the Kyrgyz Republic.
In addition, based on this Decree the Ministry of Foreign Affairs of the Kyrgyz Republic was renamed. The “foreign trade and investment” was excluded from the previous name.
The decree enters into force on the day of signing.
On signing the Law “On amendments to the Law “On tariffs of Insurance contributions for state social insurance”
On 18 November the President of the Kyrgyz Republic Sadyr Japarov signed the Law of the Kyrgyz Republic “On Amendments to the Law of the Kyrgyz Republic “On rates of insurance contributions for
state social insurance”.
The purpose of the law is to equate the rates of insurance premiums for foreign nationals temporarily residing in the Kyrgyz Republic, who currently pay insurance premiums at the rate of 3%, to the rates of insurance premiums set for employees-citizens of the Kyrgyz Republic at the rate of 27.25%.
The law aims to establish equal obligations for citizens of the Kyrgyz Republic and foreign citizens in the field of social insurance to provide equal rights to pension provision in the future.
It should be noted that due to full participation of foreign nationals in the social insurance system the financial sustainability of the pension system will increase.