The city of Osh may retain 50% of the sales tax, - head of the State Tax Service

Виктор Сизов Economy
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The idea of decentralizing the sales tax (NST) remains relevant today. This was reported on March 17 by the Chairman of the State Tax Service, Alambet Shykmamatov, during a meeting with entrepreneurs in the city of Osh.

This proposal was first voiced on August 28, 2025, during Alambet Shykmamatov's visit to the new market in the city of Osh. At that time, he recommended that the then-mayor, Zhenishbek Toktorbaev, strive to ensure that half of the NST collections remained in the city budget.

According to the provided data, the collection figures in Osh were:

- NST – 2 billion 163 million soms;

- VAT – 2 billion 162 million soms.

Shykmamatov informed that if half of these funds (about 2 billion soms) were directed directly to the development of the city, it would provide a powerful impetus for infrastructural changes. In the opinion of the head of the Tax Service, the issue of tax redistribution has not lost its significance. However, the active participation of the municipality is required to implement this mechanism. “This issue is relevant today. We discussed launching this pilot project to transfer 50% of NST to the local budget with Janar (Akaev). This approach will create a direct interest for the city authorities in the effective collection of taxes. The mayor's office was supposed to prepare the relevant draft decrees, but this has not been done. I don’t want to ‘throw stones’ at anyone, but now let Janar myrza prepare the draft document, bring it to me, and I will sign it with the words ‘absolutely correct,’” says Shykmamatov.

According to the chairman of the GST, decentralization will turn local authorities from passive recipients of the budget into active participants in the economic process, interested in bringing businesses out of the shadows.

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