Today : Apr 03, 2025
Politics
03 April 2025

Kyrgyzstan Abolishes Key Taxes And Streamlines Procedures

The State Tax Service's reforms aim to ease burdens on businesses and citizens while promoting transparency.

In a significant move towards streamlining bureaucratic processes, the State Tax Service of Kyrgyzstan, led by Deputy Chairman Mirlan Rakhmanov, announced the abolition of several taxes and administrative requirements that have long posed challenges for both businesses and citizens. This announcement was made during a radio broadcast on April 2, 2025, as part of the ongoing "Caravan of Enlightenment" initiative, which began on March 25.

The initiative, which aims to educate the public and businesses about new tax regulations, kicked off in the Jalal-Abad region and is set to continue in the Talas and Chui regions throughout April, concluding with a final event in Bishkek on April 10. Rakhmanov stated that the program includes meetings with local residents and business representatives to discuss these changes and gather feedback.

Among the major changes announced is the abolition of the Electronic Tax Identification Number (ETTN), a requirement that has often been seen as cumbersome for businesses. Rakhmanov explained that while large businesses will now be required to use electronic invoices, small and medium-sized enterprises will be exempt from these systems, aiming to reduce their administrative burden.

Additionally, the tax on vehicles has been completely abolished, a move that Rakhmanov described as a relief for vehicle owners who previously faced lengthy queues and complicated paperwork when paying their vehicle taxes. "Now, such difficulties will no longer exist," he remarked, highlighting the government's commitment to easing the tax process.

Furthermore, the State Tax Service has eliminated the requirement for a certificate of tax debt when engaging in real estate transactions. This decision is part of a broader strategy to simplify bureaucratic procedures and reduce the risks of corruption associated with property dealings. Rakhmanov emphasized that these reforms are designed to foster a more business-friendly environment in Kyrgyzstan.

In another development, individuals seeking assistance for caring for disabled persons can now obtain a certificate regarding benefits online. This new service is available through the unified portal of electronic services, "E-P услуга," which allows users to order the certificate with strong authentication methods, including a personal electronic digital signature, ID-card, or unique identifier.

The introduction of online services reflects a growing trend towards digitization in government processes, aiming to make public services more accessible and efficient. This initiative not only streamlines the application process but also enhances transparency and reduces the potential for bureaucratic delays.

As these changes roll out, the government hopes to alleviate the administrative challenges faced by citizens and businesses alike. The reforms are part of a broader effort to modernize the tax system in Kyrgyzstan, making it more responsive to the needs of its citizens while promoting economic growth.

Overall, the recent announcements by the State Tax Service signal a significant shift in how tax administration is approached in Kyrgyzstan, focusing on reducing complexity and enhancing service delivery. As the "Caravan of Enlightenment" continues to engage with communities across the country, it remains to be seen how these changes will be received and what further reforms may be on the horizon.