Reduction of shadow economy in Kyrgyzstan
The Kyrgyz businesses engaged in the shadow economy are set to transition to formal economy. Both the government and entrepreneurs are interested in such developments. For the transparency of trade relations, amendments were made to the law on introduction of the electronic system of fiscal registration of tax procedures. The novelty will allow keeping records of all operations in the digital format. According to the Eurasian Development Bank, reduction of the shadow economy of Kyrgyzstan can become a new driver of growth for the economies of the Eurasian Economic Union (EEU).
SERGEI PONOMARYOV, PRESIDENT, KYRGYZ ASSOCIATION OF MARKETS, TRADE AND SERVICES ENTERPRISES:
- The Government is ready to discuss this issue together with the members of the Parliament and the businesspeople. The most important thing is to find a model that suits both Government and business community. These efforts are aimed at prevention of loss of money from the budget because it is extremely important.
According to the estimates of the International Monetary Fund, the scope of the shadow economy of Kyrgyzstan makes up more than 30 per cent. This value remained unchanged all previous years. Experts believe that reduction of this value by unshadowing the entrepreneurial activities is an extremely important task.
ISKENDER SHARSHEYEV, KYRGYZ ECONOMIST:
- A certain number of entrepreneurs do not pay direct taxes, it is a known fact. According to experts, up to 40 per cent of people engaged in the economy of Kyrgyzstan do not pay taxes. If we cut the corruption costs, we can see that the value totals almost 20 per cent of the state budget. There is room for development.
Experts said that the large scale changes in the economy of Kyrgyzstan are linked to its accession to the EEU. The new terms provided by the union create conditions for the reduction of the shadow economy and promote favorable environment for the formal operation of businesses.