According to him, a comprehensive policy aimed at reducing the tax burden and increasing tax benefits for key sectors of the economy will be implemented in 2025. The priority areas will be agriculture, the IT sector, renewable energy sources, as well as the textile and jewelry industries, including important social aspects such as the development of sports.
“Small and medium-sized enterprises will be able to choose the most suitable tax regime — whether it be the general tax, a single tax, or a patent. This approach allows businesses to adapt their tax obligations to the actual scale of operations, while the state can form a stable and growing tax base. To date, tax rates in Kyrgyzstan remain among the lowest in the post-Soviet space, which becomes a strategic advantage for the country in the competition for investments and human resources,” emphasized Almambet Shykmamatov.
He also noted that one of the fundamental parts of the 2025 reforms will be a deep overhaul of tax administration.
“We have deliberately abandoned the practice of excessive inspections and direct pressure on businesses. We understand that fear cannot be a stable source of income for the budget. The functions of on-site inspections by the central office of the State Tax Service have been completely abolished, which has reduced corruption risks,” he added.
In addition, approaches to the appointment and conduct of inspections in territorial subdivisions have been revised, and a control and coordination system has been created, focused on the justification and quality of inspections rather than their quantity, the head of the State Tax Service believes.
According to him, tax administration for citizens and businesses has become significantly simpler.
Since January 1 of this year, the mandatory use of electronic waybills for most goods has been abolished, a moratorium on control purchases and raid tax inspections in markets has been introduced, and the universal tax declaration for individuals who are not individual entrepreneurs, as well as the need to submit “zero” reports, has been canceled.
“These steps have freed up time, resources, and energy for businesses — exactly what is needed for economic growth. Special attention is paid to the legalization of economic activity. The possibility of legalizing goods without penalties until April 1, 2025, and the write-off of tax debts for previous periods sends an important signal: the state seeks not to punish for past mistakes but to create conditions for a fair future. This has allowed thousands of entrepreneurs to start with a clean slate and restore trust in the tax system,” noted Almambet Shykmamatov.
The transformation of taxation for markets and shopping centers has also taken an important place in the reforms.
The return of the patent system, exemption from the mandatory use of cash register equipment, raising the annual revenue threshold to 50 million soms, and introducing reduced rates for the jewelry industry — all these changes were developed not in offices but as a result of dialogue with entrepreneurs.
“The pilot project in the markets of ‘Dordoy,’ ‘Kara-Suu,’ and ‘Madina,’ where administrations act as tax agents, has shown that eliminating the human factor and direct contact significantly reduces the risks of abuse and increases discipline,” noted the head of the Tax Service.
He added that digitalization has become a key element of all reforms.
“In 2025, tax administration will largely transition to a remote format. The functionality of the ‘Taxpayer Cabinet’ has been expanded, automated tax risk management systems have been implemented, and work has begun with fiscal software for data transmission. The integration of accounting systems of catering enterprises with the information system of the State Tax Service has already shown a steady increase in average daily revenue and a reduction in shadow turnover,” emphasized Almambet Shykmamatov.
Moreover, the modernization of the electronic invoice system with a virtual warehouse mechanism and the implementation of the ‘Salyk Kyzut’ module, which will allow tracking goods throughout the chain — from import or production to the end consumer — is ongoing.
“This is not just technological innovations. This is a transition to a system where the rules are the same for everyone and work automatically, making control more objective. The results of tax reforms organically fit into the overall macroeconomic picture. According to the National Statistical Committee, from January to December last year, the GDP volume amounted to nearly 2 billion soms, corresponding to an 11 percent growth. For the first time in recent years, a clear synchronization between economic growth and tax revenues has been observed, confirming that tax reform has become a driver of development rather than an obstacle,” concluded the head of the State Tax Service.
