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Economic week of Kyrgyzstan Jan. 6 12, 2020

by January 14, 2020 Market

Despite the long New Year break in the business sphere, the new economic year in Kyrgyzstan has begun with negotiations with Qatar on the issue of attracting investments. The country’s Ministry of Economy announced benefits for export-oriented producers of the country, Kyrgyzstan took part in the discussion of import tariffs in Russia, in addition, negotiations were held with TIKA on promising areas of cooperation, and the start of the direct work of the State Tax Service of the republic with taxpayers was announced.

Investment from the Gulf. The business week has begun with a meeting and discussion of promising areas with one of the largest potential investors the Qatar Investment Authority (QIA).

Ambassador of Kyrgyzstan in Qatar Chyngyz Eshimbekov held talks with QIA Chief Executive Officer Mansur bin Ibrahim Al-Mahmoud.

The issues of enhancing bilateral cooperation in the field of investment were discussed. Ambassador Eshimbekov informed about the investment potential of Kyrgyzstan and proposed a number of priority areas for interaction.

The parties agreed to conduct joint work on promising and mutually beneficial projects.

Benefits to exporters. At the beginning of the year, the Ministry of Economy of the Kyrgyz Republic spoke about tax incentives to stimulate export and economic growth.

Deputy Minister Dastan Kadyrov said that in 2019 tax benefits were presented for three industries.

The agricultural trade and logistics centers received relief. And the tax on the import of fixed assets was removed. There are certain results in this direction. In 2019, agricultural exports increased by 131.2%. In terms of products, dairy products grew by 146%, vegetables and fruits by 149%, grain beans by 142%, he said.

Kadyrov noted that agricultural processors from domestic raw materials also received VAT benefits.

The right has been granted to pay VAT with a decrease of 80%. We also excluded the threshold limit on the cost of 200 thousand soms in relation to imported fixed assets for agriculture, he added.

The deputy minister of economy noted that garment workers also received benefits.

Customs tariffs. This week, Kyrgyzstan attended a meeting of the Supreme Eurasian Economic Council in St. Petersburg.

At the end of last year, the Heads of Member States of the Eurasian Economic Union agreed on the extension of the List of Goods and Rates for which, during the transition period, Kyrgyzstan applies import customs duties different from those established by the EAEU Unified Customs Tariff until January 1, 2021.

It was emphasized that the effect of rates of the above List does not apply on tractors, cars and other motor vehicles intended primarily for the transport of people, including utility vehicles, vans and racing cars).

The indicated commodity items are subject to rates established by the EAEU Unified Customs Tariff.

Kyrgyzstan and TIKA. This week, the issues of interaction between Kyrgyzstan and the Turkish state agency TIKA has been discussed in Turkey.

Ambassador of the Kyrgyz Republic to Turkey Kubanychbek Omuraliev and TIKA President Serkan Kayalar discussed plans to expand TIKA projects in the regions of Kyrgyzstan in such areas as agriculture, healthcare, education, tourism, construction of social facilities, etc.

Ambassador Omuraliev invited TIKA to take part in the implementation of the Taza Suu national project and the project on access to the Internet in schools in remote regions of Kyrgyzstan.

Kayalar noted that the first TIKA office abroad was opened in fraternal and friendly Kyrgyzstan and assured that all planned projects agreed with the Government of the Kyrgyz Republic would be implemented.

STS for taxpayers. The State Tax Service of Kyrgyzstan announced this week that a department for working with taxpayers has been created in the central office of the State Tax Service of the Kyrgyz Republic.

The new department has an important function in organizing work with taxpayers in the territorial tax authorities, in monitoring the provision of high-quality and prompt service to citizens in Single Windows, and in pursuing a unified policy in informing the public about innovations in tax administration.

Source: Kyrgyz National News Agency