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QR Code

Kyrgyzstan to Introduce Mandatory QR Code Tax Payments

Beginning July 1, 2025, all taxes and insurance contributions in Kyrgyzstan must be paid exclusively using a unique payment code or QR code. The change was announced by the press service of the State Tax Service (GNS) of the Kyrgyz Republic. The new system will apply to taxes, non-tax revenues, and mandatory insurance contributions. Taxpayers will be able to generate a QR code through their account on the State Tax Service website or via a dedicated mobile application. Alternatively, QR codes can be obtained at Business Service Centers or local tax offices. Mirlan Rakhmanov, Deputy Chairman of the State Tax Service, emphasized that the shift to QR code payments is designed to enhance transparency and streamline the payment process. “Payment via QR code enables real-time crediting of funds to the state budget, eliminates manual entry errors at banks, accelerates service delivery, and reduces the need for queuing,” Rakhmanov stated. Banking sector representatives who attended consultations with tax officials expressed readiness to support the transition. The State Tax Service confirmed that banks are technically equipped to implement the new system without disruptions. The announcement comes as part of a broader package of reforms aimed at modernizing tax administration. The agency reported that it has intensified analytical efforts to combat tax evasion, particularly schemes involving the artificial fragmentation of businesses to qualify for tax benefits intended for small enterprises. “The State Tax Service possesses the digital tools necessary to monitor economic activity, including through data-sharing arrangements with other government agencies,” the statement added.

Drone Crash

Another Suspected Drone Discovered in Kazakhstan’s Mangistau Region

On June 19, fragments of a suspicious object resembling an unmanned aerial vehicle (UAV) were discovered in the Karakiyan district of Kazakhstan’s Mangistau Region, near the Bolashak border station. According to the Mangistau Region Police Department, the UAV debris was found in a remote area, far from populated settlements. Authorities emphasized that "no damage" was reported. The incident is currently under investigation in cooperation with the relevant agencies. Potential Iranian Link Suggested While officials have not confirmed the origin or type of the device, speculation is growing. The KazTAG news agency reported that the shape of the debris may resemble that of an Iranian Shahed-136 drone. These drones have been reportedly supplied by Iran to Russia since late 2022 and used extensively in the war in Ukraine. According to independent sources, Russia may have paid Iran approximately 1.8 tons of gold, worth around $104 million, for a consignment of Shahed-136 drones. Despite denials from both Moscow and Tehran, the drones' deployment in Ukraine has been documented by independent journalists and military experts. Meanwhile, pro-Kremlin sources have speculated that it could be a British Banshee drone used by the Ukrainian Armed Forces. [caption id="attachment_33143" align="aligncenter" width="1280"] Image: TCA[/caption] Pattern Emerges Along Western Border This is not an isolated occurrence. Since early 2024, at least three similar incidents have been recorded in the West Kazakhstan Region (WKR). UAVs or drone parts were discovered in the villages of Ualy (February 18), Atameken (March 18), and Zhanibek (March 25). Regional media have noted that some of the discovered objects bear a resemblance to French-made Crecerelle reconnaissance drones, produced by Sagem. However, no official conclusions have been issued. Broader Security Implications The repeated discovery of drone-like objects in Kazakhstan raises broader security concerns, particularly given the proximity of Russian regions frequently targeted by Ukrainian drones. Strategic installations in Russia’s Saratov region, including airfields and oil depots, have been hit multiple times. In this context, the unexplained appearance of aerial objects near Kazakhstan’s borders is concerning. Experts stress the need for transparent investigations and enhanced monitoring of airspace, especially near critical infrastructure and transportation corridors. Kazakhstan’s Ministry of Defense previously stated that UAV fragments found in February and March 2025 may have originated from activities at Russia’s 929th State Flight Test Center, located near the Kazakh border. The facility, named after Chkalov, is used by the Russian Ministry of Defense for testing military aircraft.

Amnesty

Kazakhstan to Grant Amnesty to More Than 15,000 Inmates and Offenders

Kazakhstan’s Senate has passed a bill granting amnesty to more than 15,000 individuals in connection with the 30th anniversary of the country’s Constitution. The draft law, which has been approved by both chambers of parliament, will take effect once it is signed by President Kassym-Jomart Tokayev. According to the bill, approximately 4,100 individuals currently serving sentences will be fully released from criminal liability, while the sentences or penalties of an additional 11,000 convicts will be reduced or softened. However, only a small fraction of those covered by the amnesty, fewer than 1,000, are expected to be released from prison. As explained by MP Abzal Kuspan, 632 of those eligible for full release are currently incarcerated. The remaining 3,500 individuals to be released are to be placed under the supervision of the probation service and are serving non-custodial sentences. The amnesty targets individuals convicted of minor or moderate offenses, particularly those who have not caused harm or who have compensated for any damage caused. It also applies to socially vulnerable groups. Among those eligible are 833 women, of whom 109 will be released and 724 will have their sentences reduced. Only four of the 75 convicted minors in Kazakhstan will be granted amnesty, due to the fact that most underage offenders are serving sentences for serious or particularly serious crimes. “The reason is that minors in our country are mostly convicted of serious and particularly serious offenses,” Kuspan explained. The amnesty explicitly excludes individuals convicted of serious or particularly serious crimes, including corruption, terrorism, extremism, crimes against the sexual integrity of minors, torture, repeat offenses, and those serving life sentences. Currently, 624 people in Kazakhstan are imprisoned for corruption-related crimes, 294 for terrorism, 96 for extremism, and 48 for torture. In total, over 40,000 individuals are held in the country’s criminal justice system, which includes 63 penal institutions and 16 pre-trial detention centers. Of these, approximately 33,000 are convicted prisoners, while 7,000 are awaiting trial. In recent years, the Kazakh authorities have introduced a series of reforms aimed at strengthening the protection of the rights of detainees and convicts. These efforts are part of a broader push to improve transparency and accountability in the justice system.

Traditions

The Hearth of Hospitality: The Importance of the Chaikhana in Central Asia

“Every meal begins with tea and ends with tea. Every guest is welcomed with tea. Every festival and every ceremony – from the celebration of birth to wedding to funeral – must feature tea” - Ketan Desai. Across Central Asia, the chaikhana, or teahouse, holds a cherished place in the region’s social and cultural fabric. Beyond serving cups of steaming tea, it represents history, hospitality, and a space where the rhythms of daily life unfold. For Central Asians, tea isn’t just a drink; it’s a way of life. Every pour, sup, and serving is steeped in tradition. Green tea is considered supreme in the east, while black tea holds court in the west. The offering of tea isn’t just polite, it’s a heartfelt symbol of welcoming and friendship, and to turn it down is practically a cultural crime. Tea is always poured into a piala, a small ceramic or porcelain bowl similar to the Chinese gaiwan or the Japanese chaiwan, but with its own unique steeped allure. A Link to History [caption id="attachment_33095" align="aligncenter" width="1024"] Chaikhana, Samarkand, 1905; image: Prokudin-Gorskiĭ[/caption] The chaikhana has roots stretching back centuries, intertwined with the history of the Silk Road. These teahouses sprang up along trade routes as places where merchants, travelers, and locals could rest and exchange goods, ideas, and stories. Over time, chaikhanas became hubs of cultural exchange, bearing silent witness to the blending of a rich tapestry of traditions. Central Asia is a region shaped by the collapse of the Soviet Union and subsequent episodes of democratization, political coercion, and repression. Throughout history, the chaikhana also played a role in the region’s intellectual life. Much like coffeehouses in Europe, these spaces often served as platforms for debate, poetry readings, and the airing of progressive ideas. These venues often feature private rooms with enclosed spaces or pull-down shades and outdoor spots with canopies or yurt-like structures, ensuring discretion for guests. Unlike typical restaurants or cafes, which rarely offer such private arrangements, teahouses allow organizations to hold meetings comfortably and confidentially. Teahouses serve a dual purpose by balancing privacy with public engagement, making them invaluable to those seeking both discretion and societal visibility. [caption id="attachment_33096" align="aligncenter" width="1019"] Bukhara Chaikhana; image: Joepyrek[/caption] Teahouses serve as neutral spaces where the general public and government can freely interact. They offer a safe space for open discussions, even for government employees, highlighting their unique role in fostering dialogue. The subversive potential of teahouses cannot be overlooked, as debates frequently occurred outside formal governmental frameworks. They have quietly allowed people to organize and challenge institutional power in subtle yet meaningful ways. Tradition and Architecture Chaikhanas are more than just teahouses; they’re cultural treasures enriched by stunning architecture. From simple wooden benches in rural areas to urban teahouses adorned with intricate carvings, colorful tiles, and ornate patterns, these spaces are as much about artistry as they are about tea. The interiors feature low tables and cushions, encouraging leisurely conversations and fostering a warm, communal atmosphere. Whether beside a flowing stream...

Digital Development

The Battle for Control Over Central Asia’s Digital Future

Central Asia is digitalizing quickly. Governments across the region have invested in smart cities, 5G, and AI-powered platforms. Kazakhstan ranks 24th in the world in global e-government indexes, and in Tashkent and Bishkek, young, tech-savvy populations are pushing for innovation. But such progress is not without risks. A new report from the German Marshall Fund (GMF), a Washington-based think tank, outlines how Central Asia is becoming ever more reliant on Chinese and Russian technology. These two countries, the report argues, are using digital tools not just to supply infrastructure but to shape how governments in the region manage data, surveillance, and speech. Beijing and Moscow’s tech exports act as snares, tying customers into their own economies. “Central Asian governments are aware of these challenges,” Dylan Welch, the author of the report and a China analyst at the GMF, told The Times of Central Asia. But he notes that it can be difficult to convince policymakers to prioritize the dangers of such overexposure. “For the national leaders, their imperative is to deliver economic growth because they have these young, dynamic populations that need jobs… if they don't deliver on that, then they're in for a long period of instability at home,” he said. This makes Chinese and Russian offers to develop their digital industries extremely tempting. An Entrenched Presence The report coincides with a flurry of Russian and Chinese engagement in the region. Over the weekend, Kazakhstan announced that between them, Beijing and Moscow will be responsible for delivering a new generation of nuclear reactors to the country, currently leaving French and Korean alternatives out in the cold. Then came this week’s visit of Chinese President Xi Jinping to Astana for a summit with the five Central Asian leaders. On the digital front, one notable announcement from this summit included a plan to develop an Artificial Intelligence Cooperation Center in Kyrgyzstan. China has used the term “Digital Silk Road” to describe its investments in Central Asia, and it has built much of the physical infrastructure behind the region’s digitization drive. For its part, Russia has exported its software, legal models and surveillance practices. Taken together, these systems are helping local governments tighten control over digital life. “This strategic integration makes it more difficult for regional states to diversify in the future, even though many continue to pursue multi-vector foreign policies aimed at balancing global partnerships,” Yunis Sharifli, Non-Resident Fellow at the China-Global South Project, told TCA. Where the Vulnerabilities Lie The report uses a “technology stack” framework to explain the problem. This framework looks at five layers: network infrastructure, data storage, consumer devices, digital platforms, and government policies. Across these layers, it argues, Central Asia is exposed to Chinese and Russian influence. Take Kazakhstan. It may be the most advanced digital economy in the region, but most of its internet traffic still passes through Russia. Telecom firms across the region are also required to install a Russian-made surveillance technology known as SORM (System for Operative Investigative Activities), which can intercept internet...

Currency

Opinion: The U.S. Dollar Loses Its Luster as the Uzbek Som Shines

From May 20, 2025, to June 19, 2025, the U.S. dollar declined from 12,885 Uzbek som to 12,625 som, reaching its lowest level since early December 2023. This trend is anticipated to persist. Over the past 30 days, the dollar has depreciated by 2.08% against the som. The Central Bank of Uzbekistan adheres to a flexible exchange rate mechanism, commonly referred to as a floating exchange rate. This approach allows the value of the Uzbek som to be primarily influenced by market forces of supply and demand, rather than being fixed or pegged to another currency. In the context of Uzbekistan, the Central Bank defines the market-determined exchange rate, permitting the som to fluctuate freely based on the interactions between buyers and sellers in the foreign exchange market. In 2017, Uzbekistan transitioned to a flexible exchange rate regime, aligning the som with market conditions and narrowing the gap between the official and parallel exchange rates. This move is expected to enhance export competitiveness, as noted by the European Bank for Reconstruction and Development (EBRD). While the market predominantly determines the exchange rate, the Central Bank reserves the right to intervene in the foreign exchange market to mitigate excessive fluctuations or address significant imbalances. However, it does not maintain a fixed exchange rate. The primary objective of the Central Bank is to uphold price stability, ensuring low and stable inflation. The flexible exchange rate regime empowers the Central Bank to utilize interest rates as a tool to influence inflation and manage the overall economy. Since 2020, the Central Bank of Uzbekistan has been implementing an inflation targeting framework that guides its monetary policy decisions, including those related to the exchange rate. Uzbekistan has recently achieved a remarkable milestone, with its international reserves soaring to an unprecedented $49.6 billion, primarily driven by a substantial increase in gold prices. This significant figure, recorded at the end of last week, represents the highest level of international reserves since the Central Bank of Uzbekistan began tracking this data in 2013. Uzbekistan has been on a remarkable journey of financial growth, marked by a sustained increase in its reserves over the past five months. Since the beginning of the year, the country's reserves have increased by an impressive $8.48 billion, reaching a new historic high of $49.66 billion. In May alone, the reserves saw a substantial boost of $410.2 million, translating to a 0.8% increase compared to April. This consistent upward momentum not only highlights the resilience of Uzbekistan's economy but also demonstrates its ability to adapt and thrive in a dynamic global landscape. Central to this financial ascent has been the role of gold, which has enjoyed significant demand due to its elevated prices in international markets. Over the last month, gold prices surged by 3.27%, rising from $3,280 to $3,390.07 per ounce. When examining the broader trends, it is evident that gold has significantly appreciated, with a striking 25.5% increase since the start of this year and an even more impressive 41.3% surge over...