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Anton Chipegin

Anton was born and grew up in Bishkek, Kyrgyzstan. He worked as a television correspondent, editor and TV presenter on the main television channels of the republic, such as NTS and MIR 24, and also as an economic observer at international news agencies and other media resources of Kyrgyzstan.

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taxes statistics small and medium businesses Legislation Economy

Small Businesses Employ Over Half a Million People in Kyrgyzstan

Small and medium-sized enterprises (SMEs) play a vital role in Kyrgyzstan's economy, employing 585,000 people and contributing significantly to various sectors, according to the National Statistical Committee (NSC). As of 2024, Kyrgyzstan has 18,139 registered small businesses paying taxes. SMEs are particularly active in agriculture and manufacturing, with private entrepreneurs producing 65% of the country’s agricultural output and 26% of its industrial goods. Additionally, much of the hotel and restaurant industry is owned and operated by medium-sized private businesses. Most of these enterprises are concentrated in the Bishkek and Chui regions, where 80% of the country’s small and medium-sized businesses operate. The Kyrgyz government has taken steps to encourage entrepreneurs to operate transparently and contribute to the formal economy. In the summer of 2024, the voluntary patent system was abolished and replaced with a requirement for businesses to use cash registers. To incentivize compliance, businesses with an annual turnover of up to KGS 15 million ($170,000) are exempt from taxes if they purchase cash registers, submit reports to the State Tax Service, and pay insurance and pension contributions. For businesses with a turnover between KGS 15 million and KGS 30 million ($340,000), a reduced tax rate of 0.5% on turnover is applied. Small and medium-sized businesses are not only a backbone of Kyrgyzstan’s economy but also a key source of job creation. Government initiatives to formalize SME activity and simplify taxation are expected to further bolster the sector’s growth and contribution to the national economy.

4 weeks ago

Parliament Politics Corruption Court Cases Criminal Responsibility Anti-Corruption Corruption Allegations

Following Corruption Arrests in Kyrgyzstan, MP Calls for PM Japarov to Resign

At a recent parliamentary session, Kyrgyz MP Elvira Surabaldiyeva called for the resignation of Prime Minister Akylbek Japarov following the arrest of senior officials from the State Tax Service (STS). The arrests stemmed from allegations of a corruption scheme involving electronic invoices that reportedly cost the state 3.2 billion KGS (approximately U$37 million). Accusations Against the Government Surabaldiyeva directly accused Japarov and his government of corruption. Addressing the Minister of Economy and Commerce present at the session, she questioned the administration’s inability to curb bribery. “You collect money from the people, but you cannot eliminate bribery in your country. Why are you surprised that people don’t trust you?” she said. “The Deputy Chairman of the Cabinet of Ministers has acknowledged that the corruption scheme caused 3.2 billion KGS in damage. This is a colossal amount. At the very least, the Prime Minister should resign, and the head of the tax service should face jail time.” Government Response Deputy Prime Minister Edil Baisalov responded to Surabaldiyeva’s claims on social media, defending the government’s record and arguing that tax collections in Kyrgyzstan have nearly tripled over the past five years due to improved governance and administration. “The people see what their taxes are used for and recognize the state’s development,” Baisalov stated. He added that the era of bribing tax inspectors is over, emphasizing the government’s commitment to a “relentless struggle” against corruption within the state apparatus. Background on Corruption Arrests Earlier, Kyrgyz special services arrested three senior tax officials from the STS, accusing them of orchestrating a systematic corruption scheme. The officials face charges under the article “Abuse of official position”. Despite these measures, the accusations against Japarov’s administration have sparked broader discussions about the government’s ability to effectively combat corruption and restore public trust.

4 weeks ago

officials Anti-Corruption Criminal Responsibility Prosecutor Arrest Court Cases

Kyrgyz Authorities Raid State Tax Service Offices

Kyrgyzstan’s State Committee for National Security (SCNS) conducted searches across four district offices of the State Tax Service (STS), detaining several high-ranking employees on allegations of abuse of office. According to the SCNS, 30 tax officials were apprehended, including three of the four heads of the State Tax Service in Bishkek. These officials were placed in the SCNS pre-trial detention center on charges related to fraudulent shipping invoices. “During the inspection, it was revealed that major manufacturers and importers of excisable goods - such as alcohol and tobacco products - recorded revocations and withdrawals of shipping documents in the relevant accounting databases, despite continuing to supply these products predominantly to southern regions of the country,” the SCNS stated. The investigation showed that in 2024 alone, tax officials failed to address numerous instances of revoked shipping invoices amounting to $3.7 million. This reportedly enabled large manufacturers and importers to evade taxes. A criminal case has been initiated under Article 337 of the Criminal Code, which pertains to the abuse of official position. Authorities are working to determine the total financial damage caused to the state. Meanwhile, charges are expected to be brought against the detained district heads of the Bishkek STS offices. A court will decide on appropriate legal remedies as the investigation continues.

1 month ago

Russia Economy Migration Migrant Workers International Cooperation

Kyrgyzstan Criticizes Russia’s Approach to Migration

Edil Baisalov, Deputy Chairman of Kyrgyzstan’s Cabinet of Ministers, voiced frustration over Russia’s approach to labor migration during an interview with Russian media. He criticized Moscow for failing to fully honor the principle of free movement of labor within the Eurasian Economic Union (EAEU), of which Kyrgyzstan is a member. “Free movement of labor resources is one of the principles of the Eurasian Economic Union. Our fundamental documents state that we have access to the labor market on the same basis as citizens of any member state. Thousands of Russians work for us on the same terms as Kyrgyz,” Baisalov stated. Despite these agreements, he claimed that Kyrgyz workers often face restrictions and criticisms in Russia akin to those applied to migrants from non-EAEU countries. “People, including seasonal workers, may stay for weeks or months. Some have relocated to Russia with their families and work as doctors, teachers, scientists, and professors. Our migrants significantly contribute to various sectors of Russia’s modern economy, particularly in the service industry—hotels, cafes, and more. Every penny earned by Kyrgyz migrants in the Russian Federation comes at the cost of incredible effort,” he said. Baisalov highlighted that these challenges are prompting Kyrgyz labor migrants to seek opportunities in other nations, such as South Korea, Japan, the UAE, Turkey, and EU countries. “Tens of thousands of our women have found their calling in Italy, where elderly care is in high demand. It turns out there’s no better choice than our caregivers and nannies. We even opened an embassy in Italy because nearly 30,000 Kyrgyz citizens reside in Naples and on the island of Sardinia,” he explained. In light of these trends, the Kyrgyz government has pledged to create 250,000 new jobs within the country in the coming year. A campaign is also underway to encourage citizens working abroad to return home.

1 month ago

Healthcare Legislation health security Criminal Executive Code Public health criminal

Kyrgyz Health Ministry Pushes for Laws to Shield Medics from Violence

The Kyrgyz Ministry of Health has called for amendments to the country’s criminal code to establish a legal framework protecting medical professionals from violence by citizens. The proposed measures aim to address a growing concern for the safety of doctors, nurses, and other healthcare workers. “Violence against medical workers is a serious problem that requires immediate action,” the ministry stated in its justification for the bill. “Doctors, nurses, and other staff face physical aggression from patients, relatives, or even bystanders. This threatens the health and lives of medical personnel and disrupts the normal functioning of healthcare institutions.” The ministry emphasized that threats or acts of physical harm create a stressful work environment, distract medical workers from their duties, and may lead to errors in diagnosing and treating patients. Proposed Penalties The Ministry of Health outlined specific punishments for various forms of violence and disrespect toward medical workers: • Minor harm: A fine of up to 100,000 KGS ($1,200), correctional labor for six months to one year, or deprivation of the right to hold certain positions. • Severe harm: A fine or imprisonment for one to three years. Additionally, the ministry seeks penalties for disrespectful or insulting behavior toward doctors. This includes demonstrating obscene gestures, verbal abuse, or indecent conduct, which could also result in fines or correctional labor. Growing Concerns Healthcare workers in Kyrgyzstan have long faced violence in their workplaces. After several incidents of attacks on doctors by patients and their relatives, the National Hospital implemented stricter security measures, including the installation of panic buttons and video surveillance cameras. Medical professionals have voiced the need for stronger protections to ensure a safer working environment. The proposed amendments aim to deter violence and foster greater respect for those who provide critical healthcare services.

1 month ago