In the sewing industry, there are officially 10-13 thousand workers, although up to 200 thousand may be employed, - Deputy Head of the State Tax Service Isabekov

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One of the key problems facing the sewing industry in Kyrgyzstan is the work in the informal sector, including the concealment of the true number of workers. The Deputy Chairman of the State Tax Service, Kubanychbek Isabekov, voiced this issue on March 10, 2026, during a radio broadcast.

“The situation where payments in the sewing industry are made in the shadows is indeed a serious problem. We are aware of the existence of shadow activities and regularly communicate with various entrepreneurs, which confirms this,” he noted.

According to Isabekov, the need to legalize the sector has become particularly urgent against the backdrop of increased control over exports to Russia. He emphasized that Russian authorities require all deliveries to be made in full compliance with the law, including the payment of all taxes.

“The Russian Federation has also tightened control and introduced obligations to pay all taxes in accordance with the law. Now, when importing, it is necessary to pay value-added tax. We, for our part, are also strengthening the requirements for VAT payment at the border,” he reported.

The Deputy Head of the State Tax Service also noted that business representatives themselves admitted that they often reported only a small number of workers in their reports.

“For example, if an entrepreneur employed 20 people, only two or three were mentioned in the report — this is what they themselves admitted,” Isabekov added.

At the same time, he suggested that the industry should not return to past violations but should start its activities “from a clean slate.”

“Discussing past mistakes and trying to correct them will not lead to a positive result. We want the entire industry to start working from a new page,” he emphasized.

According to Isabekov, approximately 10,000 to 13,000 workers are officially registered in the sewing industry, for whom income taxes are paid. However, there are estimates within the industry indicating employment ranging from 100,000 to 200,000 people.

“We hope to officially register at least 50,000 to 100,000 workers. This is important because insurance contributions ensure the future pension of citizens,” he stated.

He added that the legalization of employment is important not only for tax accounting but also for the social protection of workers. According to him, even small insurance contributions matter for the formation of future pensions, and increasing official employment gives the government the opportunity to raise pension payments.
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