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Kyrgyz Businesses and Government Meet to Discuss New Tax Initiative

Government officials, members of parliament, and entrepreneurs gathered at one of Kyrgyzstan’s largest business associations to discuss pressing issues affecting the country’s business environment, including taxation and efforts to streamline processes for entrepreneurs. The primary focus of the meeting was the introduction of the electronic bills of lading (EBL) system. The Times of Central Asia has previously reported on the challenges businesses face with this new system. The State Tax Service (STS) has pledged to revise the EBL system by the end of the month to address concerns raised by the business community. Almambet Shykmamatov, head of the STS, acknowledged that authorities had rushed the implementation of the EBL system without adequately considering the interests of businesses. “We understand that the market is a complex system that cannot be changed overnight. We are committed to dialogue and compromise. Our goal is not only to regulate but also to support businesses. That’s why continuous engagement with the business community is essential,” Shykmamatov stated. Beyond electronic bills of lading, entrepreneurs raised concerns over the lack of preventive measures in Kyrgyzstan’s system of fines. Akzhol Isayev, general director of Dordoi Security, highlighted that unlike Russia and Kazakhstan, which have legal provisions for issuing warnings, Kyrgyzstan imposes penalties without warnings. “Kyrgyzstan has 11 articles with fines, but none that provide for warnings,” Isayev explained. He also noted that some fines, which can reach as high as one million KGS (approximately $12,000), often lead to business closures or encourage corruption. Shykmamatov admitted that excessive tax pressure can harm the business environment. Consequently, participants decided to establish a working group to review and reform the system of penalties, aiming for a more business-friendly approach. Sergei Ponomarev, president of the Association of Markets, Trade, and Services Enterprises, emphasized that protecting private property is critical for attracting investment. However, he warned that businesses in Kyrgyzstan are hesitant to invest in real estate due to legal uncertainties. “An entrepreneur might honestly purchase property, invest in it, and create jobs, only to later discover that the land was acquired illegally 30 years ago. This uncertainty makes businesses afraid to commit to long-term projects,” Ponomarev said. To address this issue, the business community has proposed the introduction of a statute of limitations for real estate transactions. “It’s encouraging when the state not only listens to our problems but also offers constructive solutions. I am confident that this approach will improve the investment climate and raise the standard of living for our citizens,” Ponomarev added. The STS noted that similar meetings have been held with representatives of logistics companies, the Chamber of Commerce and Industry, and the American Chamber of Commerce in Kyrgyzstan.

Central Asian Art Kazakh Art Art and Culture Small Business

Art and Inspiration: Capturing the Essence of Almaty

With colorful illustrations of landmarks, natural monuments, and city-life moments, Aidana Niyazalieva’s postcards of Almaty stand out. TCA spoke with the artist to learn more about her inspiration, creative process, and challenges behind her postcards and the Almaty arts scene. TCA: What inspired you to start making postcards of Almaty? I've been drawing since I can remember; everything surrounding me – my room, the streets, and the buildings – inspires me. This led me to study architecture. However, after working as an architect, I realized that my passion for drawing was stronger. I decided to try it, eventually devoting myself to illustration and turning this hobby into a profession. I started with the city I grew up in, Almaty, and created a few postcards of the views I walked past the most. This became a way to combine everything I love - art, architecture, and my love for the city. TCA: How do you decide which landmarks, views, or themes to feature in your postcards? I choose places and themes close to me that evoke an emotional connection in people. Usually, the ideas come from my walks around the city. During my walks, I take many photos for possible drawings. Sometimes, a few buildings of the same type could grow into a series of illustrations, as in the “Houses“ postcard set that was united by the old houses of the Soviet period located in a Golden Square area. Also, I might get requests from people about places they would like to see, as happened with the Kazakhstan Hotel or Esentai River illustrations. TCA: What is your favorite spot in Almaty to capture in your art, and why? My favorite place in Almaty is the old city center. Its unique architecture, with characteristic features from different periods from neoclassical to modernist buildings, and its streets with cafes and terraces have always attracted my attention. Those buildings keep their history, whether these are old houses with sophisticated details or monumental facades of theaters and institutes. When I'm there, I always look closely at small elements like the carved balconies, window frames, mosaics, and patterns on the facades – I try to capture them in every illustration. TCA: Are there specific stories or personal memories behind some of your postcard designs? As a local, I have a personal connection to almost every location I illustrate. Capturing a place authentically requires more than just visual reference - it also needs an emotional connection. That’s why I barely draw locations I’ve never visited. Behind almost every illustration is a moment tied to the place. For example, the Kasteyev Museum holds a special place in my heart. My grandma used to take me there often when I was little, and it’s where I first took art lessons. So, I decided to create this illustration to capture the architecture of the museum and the memories connected to the place. TCA: Can you walk us through the creative process behind designing a postcard? Firstly, after the location is...

Legislation Tax Small Business small and medium businesses SMSEs taxes

Amid Discontent Among Entrepreneurs, Kyrgyz Authorities Ease Tax Burden

Kyrgyz President Sadyr Japarov has instructed the new Prime Minister Adylbek Kasymaliev and the head of the State Tax Service (STS) to develop a new fiscal policy that will not overburden citizens or force entrepreneurs to conceal their income. Special attention is to be paid to electronic bills of lading (EBL). Following a corruption scandal in the STS, the new head of the tax service, Almambet Shykmamatov, proposed abolishing the EBLs introduced by the government in the summer of 2024. At a parliamentary session, Shykmamatov explained that the EBLs were implemented to combat the shadow turnover of goods. However, the new reporting system has sparked numerous complaints from entrepreneurs. Shykmamatov stated, "I will find those who implemented the EBL system improperly and without analysis and ensure they are held accountable. I will explain what populism is and why simply raising taxes and calling it economic growth is unacceptable." EBLs (electronic bills of lading) replaced the so-called voluntary patents that entrepreneurs and market traders used to purchase monthly as a form of tax payment. Later, during a government meeting, Kasymaliev, head of the Kyrgyz Cabinet of Ministers, confirmed that despite widespread public protests, the authorities do not intend to abolish EBLs entirely but assured that the Cabinet will work to simplify the system and will study the possibility of revising the list of goods to be included in the reporting of EBL. The Times of Central Asia surveyed entrepreneurs who have been most affected by EBLs. Venera Mugalimova, a seller of electrical building supplies at a Bishkek market, said, "The introduction of EBLs has severely complicated my life. This system is unfeasible for me and all vendors working on consignment sales. In such cases, we first receive the goods, sell them, and only then settle the payment. The system doesn’t recognize 'consignment goods.' The company providing the goods on consignment cannot issue me an invoice without payment.” According to sellers, individuals offering paid training on how to use the EBL system have started to appear in Kyrgyzstan's online space, and their services are in high demand. "It’s a massive headache, although it depends on your business type. In my case, we deal with many small items—about 5,000 different products. Manually entering the name, price, and exchange rate for each product is problematic and very time-consuming," Alena, a wholesale seller of fabrics and clothing at Dordoi Market, told The Times of Central Asia. Her company not only sells goods but also imports them from nearby countries. "With EBLs, I lose a lot of time. Either I focus on reporting or work. Combining both is very hard, and we’d need to hire at least three accountants for the number of outlets we have. That’s additional expenses," the businesswoman noted. Sergey Ponomarev, President of the Association of Markets, Trade Enterprises, and Service Industries, commented to The Times of Central Asia that moving away from the patent system was crucial in combating the shadow economy. However, the current situation with EBLs looks less than optimistic.

Small Business Economy Central Asia Kazakhstan EBRD Education

EBRD Launches New Training Program for Female Entrepreneurs in Kazakhstan

The European Bank for Reconstruction and Development's (EBRD) Women in Microbusiness training program is being launched in Kazakhstan to support women entrepreneurs facing social or economic obstacles in their business activities. Statistics show that whilst women manage 49 percent of all micro and small-sized businesses in Kazakhstan, their representation in medium and large business sectors is only 36 percent and 19 percent, respectively. Reporting on the initiative, Alma Kasymova, head of the EBRD's SME (small- and medium-sized enterprises) Program in Kazakhstan, stated, "Our main goal and mission is to empower women entrepreneurs to grow and develop their micro-enterprises through affordable and quality training. We are confident that this program will help participants to expand their competencies and open new perspectives in larger business segments." The training, conducted online in Kazakh and Russian, will run for five months and comprise six business modules in marketing, sales, finance, human resources, operational management, strategic planning, as well as automation and the use of artificial intelligence (AI). Participants will be able to enrol at any time convenient for them. . Welcoming its launch, an EBRD spokesperson announced, "This is the third implementation of the program -realized in collaboration with the training and consulting company Dialog . Previous projects allowed almost 1,500 women entrepreneurs to strengthen their skills and improve their businesses. "

Small Business

Interest-Free Loans for SMEs in Kyrgyzstan

The Ministry of Finance of Kyrgyzstan has published a report on the amount of interest-free loans granted to enterprises under the project, "Emergency Support to Micro, Small and Medium Enterprises" as of January 1st, 2024. The report indicates that loans of 5,921,800,000 som ($6,629,870) were granted to 8,929 entrepreneurs. This includes loans of up to 1,000,000 som ($11,196) to 7,788 entrepreneurs totaling 4,219,300,000 som ($47,238,020), and up to 3,000,000 som ($33,587) to 1,141 entrepreneurs totaling 1,702,400,000 som ($19,059,561). The project, "Emergency Support to Micro, Small and Medium Enterprises," which started its activities in September 2021, and will continue until June 2027, is supported and financed by the World Bank and the Asian Infrastructure Investment Bank (AIB). Several agreements with commercial banks have also been signed under the project. Small and medium-sized businesses play a significant role in the private sector, which in turn forms the basis of Kyrgyzstan's market economy. The main reason for this is the lack of the need for large start-up investments, and the speed of resource turnover. Due to their scale, small businesses represent the largest layer of the economy, determining the socioeconomic and partly the political level of development within the country. They act as both direct producers and consumers of a wide range of goods and services. The small business sector operates mainly in local markets. Micro, small and medium-sized businesses account for approximately 50% of Kyrgyzstan's GDP, and are fundamental to job creation in the country.

Kyrgyzstan Kazakhstan Economy Small Business

ADB supports women-run businesses in Kazakhstan, Kyrgyzstan

NUR-SULTAN (TCA) — The Asian Development Bank (ADB) and RG Brands (RGB), a leading food and beverage group in Kazakhstan, have signed a $20 million loan to modernize operations along the company’s regional distribution chain. The assistance will improve the livelihoods of shopkeepers and support women’s empowerment in Kazakhstan and in neighboring Kyrgyzstan, ADB’s Country Office in Kazakhstan said on December 20. Continue reading