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Proposals to Eliminate Barriers for MSMEs Presented at the National Institute for Strategic Initiatives

Proposals to Eliminate Barriers for MSMEs Presented at the National Institute for Strategic Initiatives

On April 18, 2025, as part of a series of follow-up meetings stemming from the national information and consultation campaign "Business Enlightenment Caravan," representatives of the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic and the JIA Business Association visited the National Institute for Strategic Initiatives (NISI) under the President of the Kyrgyz Republic.

The meeting was attended by Shumkarbek Adilbek uulu, Deputy Director of NISI; Uluk Kydyrbaev, Head of the Secretariat of the Investment Council; and Bakytbek Sartmametov, Chief Legal Officer of the JIA Business Association.

The main purpose of the meeting was to discuss systemic challenges and barriers faced by micro, small, and medium-sized enterprises (MSMEs), and to present practical proposals developed during the Caravan for integration into the state administration’s policy on debureaucratization.

Context: Earlier, a Presidential Decree titled "On Additional Measures to Improve the Efficiency and Debureaucratization of the Public Administration System of the Kyrgyz Republic" led to the creation of an Interagency Commission to monitor its implementation. The decree was signed by the Chairman of the Cabinet of Ministers, Mr. Adylbek Kasymaliyev. The newly appointed Director of NISI, who also serves as the Minister of Justice, now holds the status of Deputy Chairman of the Cabinet of Ministers.

Key issues discussed during the meeting included:
– complex procedures for obtaining permits and land for entrepreneurs;
– absence of unified regulations for organizing tourism zones;
– low levels of digitalization;
– obstacles to implementing public-private partnership (PPP) projects at the local level;
– weak legal protection for tenants of municipal property;
– lack of transparency in judicial proceedings;
– insufficient coordination between different levels of government.

Proposed solutions included:
development of a geoinformation platform with integrated digital document management for municipal and tourism governance;
launch of a unified "one-stop-shop" portal for permit procedures;
strengthening legal mechanisms for investor protection;
harmonization of rental policies and tariffs;
establishment of an independent commission for resolving PPP-related disputes;
enhancement of the role of Regional Investment Councils as centers of project expertise and support.

At the conclusion of the meeting, NISI representatives expressed readiness to incorporate the presented proposals into the ongoing preparation of recommendations under the framework of the Presidential decree on debureaucratization. Practical and digital solutions were especially noted as priorities for further reforms.

The dialogue between experts, business representatives, and government institutions continues, serving as a crucial mechanism for removing administrative barriers and fostering a predictable environment for entrepreneurship in the Kyrgyz Republic.

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Business Enlightenment Caravan Outcomes Presented to the State Tax Service

Business Enlightenment Caravan Outcomes Presented to the State Tax Service

On April 18, 2025, the central office of the State Tax Service under the Ministry of Finance of the Kyrgyz Republic hosted a meeting to present the outcomes of the nationwide information and consultation campaign “Business Enlightenment Caravan.” The meeting was initiated by the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic, led by Uluk Kydyrbaev, and the JIA Business Association, represented by its Chief Legal Officer Bakytbek Sartmametov. From the State Tax Service, Deputy Chairman Kubanychbek Ysabekov and heads of relevant departments participated.

The key objective of the meeting was to summarize the results of the campaign, which has been taking place from March 25 to April 22, 2025, in eight cities across the country. The Caravan reached all regions of the Kyrgyz Republic and gathered over 2,000 participants, including entrepreneurs, government representatives, business associations, and the expert community.

Throughout the Caravan, a wide range of issues concerning entrepreneurs was discussed—from taxation and labor legislation to technical aspects of document management and the implementation of digital tools. Representatives of the State Tax Service were actively involved in all sessions, providing explanations and responding to questions from entrepreneurs.

Questions, concerns, and suggestions from business participants were systematically recorded. Based on this input, a consolidated summary was prepared, containing key proposals for improving tax administration and enforcement practices. This document was officially presented to the State Tax Service during the meeting.

Among the proposals raised were both systemic suggestions and specific examples. One such example included recommendations to revise the territorial restrictions on patents—particularly for services like videography, which require frequent travel across regions. Another proposal was to develop a new method for calculating patent fees by considering both the area of the retail space and the nature of the goods being sold.

During the meeting, the State Tax Service confirmed that over 80% of the received proposals would be taken into account in the agency’s further work. All parties expressed their readiness to continue cooperation in order to improve the efficiency of tax administration and create a more favorable environment for entrepreneurship.

 

The campaign is organized by the JIA Business Association and the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic, with the support of the Plenipotentiary Representatives of the President in the regions, the Ministry of Economy and Commerce, the General Prosecutor’s Office, the Ministry of Labor, Social Security and Migration, the State Tax Service under the Ministry of Finance, the Center for Public-Private Partnership under NAIA, the Department of Tourism under the Ministry of Economy and Commerce, the Land and Water Oversight Service under the Ministry of Water Resources, Agriculture and Processing Industry, the EBRD, the OSCE Program Office, UNDP, and the Center for Business Support.

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Secretariat of the Investment Council and Department of Tourism Enhance Cooperation in Tourism Development and Investment Attraction

Secretariat of the Investment Council and Department of Tourism Enhance Cooperation in Tourism Development and Investment Attraction

On April 17, Uluk Kydyrbaev, Head of the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic, met with Erdenet Kasymov, Director of the Department of Tourism under the Ministry of Economy and Commerce of the Kyrgyz Republic.

During the meeting, the parties reviewed the activities of their respective organizations, discussed key areas of interaction, and identified priority sectors for collaboration aimed at revitalizing the country's tourism potential and attracting private investments into the sector.

Uluk Kydyrbaev outlined the primary objectives and tools of the Investment Council, emphasizing the importance of institutional support for investment projects in the tourism sector, particularly at the regional level. Special attention was given to the development of tourism infrastructure in regions with high tourist interest, where challenges such as insufficient hotel capacity and a shortage of qualified personnel persist.

Erdenet Kasymov highlighted that, within the framework of the National Program for Sustainable Tourism Development of the Kyrgyz Republic for 2025–2030, a series of initiatives are planned to promote environmentally friendly solutions and the development of "green" tourism. These include the development of electric-powered water transport on Issyk-Kul Lake, the exploration of geopark potentials (e.g., Madygen), and the creation of an annual national calendar of tourist events to facilitate more effective trip planning for both domestic and international tourists.

As a result of the meeting, the parties agreed to establish systematic cooperation, including through the Investment Council's platform for attracting investors, and to implement joint initiatives aimed at developing tourism in small and border towns.

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“Business Enlightenment Caravan” in Kara-Balta: Open Dialogue with Entrepreneurs Brings Together Over 250 Participants

“Business Enlightenment Caravan” in Kara-Balta: Open Dialogue with Entrepreneurs Brings Together Over 250 Participants

On April 15, 2025, an informational and consultative meeting was held at the House of Culture in the city of Kara-Balta as part of the nationwide “Business Enlightenment Caravan” campaign. The format of direct dialogue between government representatives and entrepreneurs once again proved its relevance and demand: over 250 participants attended, including representatives of small and medium-sized businesses, local authorities, and business associations.

The discussion covered a wide range of topics, from specifics of tax administration and the use of cash register equipment to insurance mechanisms and the prospects of transitioning to a patent-based taxation system.

One of the key topics addressed was the system of mandatory insurance. Representatives of insurance organizations explained that the insured amounts vary depending on the category of property: for residential housing in rural areas, the coverage limit is KGS 500,000, and in urban areas — up to KGS 1 million. For inventory and goods, the amount is calculated based on turnover, with a maximum limit of KGS 700,000. Clarifications were also provided regarding passenger insurance. As for agricultural insurance, it was noted that such a product is not yet available, but work is underway in collaboration with relevant associations to introduce it.

Participants paid significant attention to the use of electronic consignment notes (ETTN) and electronic invoices (ESF). Starting May 1, 2025, ESFs must be issued no later than five days after the delivery of goods (excluding retail sales to individuals). Tax authorities reminded that the use of ETTNs has been canceled for most goods and also noted the reinstatement of the patent-based taxation system for small and medium-sized enterprises. The patent rates will be determined based on the entrepreneur’s income and regional specifics. Additional information will be published in due course.

Practical concerns were also raised regarding difficulties in purchasing from suppliers who do not issue ESFs, particularly at large markets. It was explained that this issue is known and that possible response measures are being considered. While some matters remain under review, specialists assured that all feedback from entrepreneurs is being recorded and will be forwarded to the relevant authorities for further consideration.

Parallel to the panel sessions, entrepreneurs could receive individual consultations in the theater's foyer. Consultation zones were organized with representatives from development funds, state banks, and insurance companies.

The next stops of the Caravan: Bishkek (date and time will be announced).

The campaign is organized by the JIA Business Association and the Secretariat of the Investment Council under the Cabinet of Ministers of the Kyrgyz Republic, with the support of the Plenipotentiary Representatives of the President in the regions, the Ministry of Economy and Commerce, the General Prosecutor’s Office, the Ministry of Labor, Social Security and Migration, the State Tax Service under the Ministry of Finance, the Center for Public-Private Partnership under NAIA, the Department of Tourism under the Ministry of Economy and Commerce, the Land and Water Oversight Service under the Ministry of Water Resources, Agriculture and Processing Industry, the EBRD, the OSCE Program Office, UNDP, and the Center for Business Support.

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