The week was quite active in economic terms for Kyrgyzstan. The main feature of the week is that the total GDP of the country increased by more than 4%, while in foreign trade exports of goods increased by 9%. At the same time, the number of companies switching to electronic invoices has increased, a new tariff grid for vehicles has been introduced for customs clearance, two state banks will continue to support farmers' business. Meanwhile, the country's Tax Service has executed tax collection plan last year, the Government announced that the average salary rose by 5.3% last year and a Construction Strategy has been developed in the country. All these factors are encouraging and give confidence in the continuation of positive trends in the country's economy, despite the fact that the coming year will be more politicized due to the upcoming parliamentary elections.
Electronic invoices. Within a month, 460 more companies joined the pilot project of the State Tax Service of the Kyrgyz Republic on application of electronic invoices. Currently, the total number of such companies in the country is 503.
These companies actively participate in the pilot project and make their proposals and comments on improving the electronic invoice information system.
In addition, according to the decision reached earlier, employees of the State Tax Service and members of the initiative group representing various business spheres are testing the Electronic Invoice information system on a weekly basis. By each meeting during the week IT-specialists finalize the electronic invoice information system taking into account suggestions and comments.
The transport grid. Since the beginning of this year, a new tariff grid of 5% and 0.3% of the estimate of motor vehicles used in the first registration and re-registration of motor vehicles for 2020 has come into force.
The fee at the first registration of the vehicle is 5% of its value approved in the tariff schedule, and at its re-registration 0.3% of its value also approved in the tariff schedule. Note that on July 3, 2018 came into force Government Decree, according to which the fee for re-registration of vehicles with 1% of the average market value, determined by the tariff schedule, decreased to 0.3%.
Recent years, the cost of motor vehicles on the tariff schedule remains approximately at the same level and there is no tendency to increase the amount of fees. The new tariff schedule of motor vehicles assessment for 2020 has not changed, and the amount of fees at the first registration and re-registration remains at the same price level as in 2019.
The Fund works. The Russian-Kyrgyz Development Fund (RKDF) plans to increase the amount of financing for entrepreneurship to USD 105 million in 2020.
Head of the RKDF Board Erkin Asrandiyev noted USD 15 million of this amount will be provided as a long-term loan to RSK Bank OJSC. These funds will be used to finance medium-sized businesses. On its own line, the RKDF will finance with other banks projects worth $90 million.
Asrandiyev also stressed good results were achieved in 2019.
"In general, there is a trend of activity among the business environment. The total volume of approvals from the Fund since its inception reached USD 379 million. Of these, two-thirds are allocated to priority sectors - agro-industry sector, manufacturing and tourism," the head of the RKDF Board said.
The Guarantee Fund also. In 2019, the Guarantee Fund issued 946 guarantees to entrepreneurs of the country for a total of KGS 921 million. Most of these funds are directed to regional projects.
According to Head of the Guarantee Fund Malik Abakirov, last year the authorized capital increased from KGS 582 million to KGS 1,132 million, an increase was 195%. The Fund allocated 946 guarantees. This means a 226% growth compared to 2018.
The state banks will support farmers. This week heads of Aiyl Bank OJSC and RSK Bank OJSC said about continuing to support and finance projects in agriculture, processing and industrial sectors of the country.
"The mission of Aiyl Bank is to support producers in rural areas and agriculture in general, including processing of products. In 2019, the loan portfolio was increased to KGS 20 billion, the bank's assets reached KGS 30 billion. Meanwhile, the deposit base grew by KGS 2 billion," said Baktybek Shamkeyev, Chairman of the Aiyl Bank Board.
Plans of the country’s State Tax Service. This week it became known that in 2019 the State Tax Service of Kyrgyzstan collected taxes and payments for KGS 83 billion 989.5 million. The established plan was fulfilled by 100%, or exceeded by KGS 10.8 million.
According to the State Tax Service, compared to 2018, tax revenue increased by KGS 4 billion 405.6 million.
"In 2019, there was overfulfilment of the forecast plan for a number of taxes. In particular, the tax on income of gold mining companies was executed by 128.1%, the single tax - by 120.5%, land tax - by 111.3%, real estate tax - by 107.5% and income tax - by 106.4%. The tax on movable property has been executed by 104.4%, the tax on the basis of a voluntary patent - by 103.7%, the tax on the basis of a mandatory patent - by 103.3%, the tax for the use of subsoil - by 103.2% and non-tax revenues - by 130.2%," the report says.
In 2020, KGS 93.7 billion of taxes are to be collected by the State Tax Service.
GDP growth. The volume of gross domestic product of Kyrgyzstan in January-December 2019 amounted to more than KGS 590 billion, and increased by 4.5% compared to the same period in 2018.
According to Head of the National Statistics Committee of the country Akylbek Sultanov, excluding enterprises for the development of the Kumtor field, the volume of GDP in January-December 2019 amounted to about KGS 543 billion and increased by 3.8%.
“The volume of industrial production amounted to more than KGS 278 billion and compared with the same period in 2018 increased by 6.9% due to an increase in the production of metal ores - by 28.5%, in the textile industry - by 18.3%, production of basic metals - by 12.3%, as well as coal mining - by 6.9% and food production - by 4.3%,” Sultanov said.
Also, he noted, positive trends were observed in agriculture, where the growth in volumes was 2.6%, in wholesale and retail trade - 4.7%, in construction - 10.6%.
Foreign trade turnover of the Kyrgyz Republic. It was announced the foreign trade turnover of Kyrgyzstan in January-November 2019 amounted to USD 6 billion.
According to Chairman of the National Statistics Committee of the country Akylbek Sultanov, in comparison with January-November 2018 figures decreased by 2.6%, while export supplies increased by 9.4% and import revenues, on the contrary, decreased by 6.6%.
"In January-November 2019, the volume of mutual trade of the republic with member-states of the Eurasian Economic Union (EAEU) amounted to more than $2 billion, and decreased by 4.2% compared to January-November 2018," said the head of the Committee.
Sultanov also added during this period there was a decline in both export supplies by 0.8% and import revenues by 5.1%. Russia (61.6%) and Kazakhstan (36.2%) accounted for the largest share of mutual trade with the EAEU member-states.
Salary increase. This week it was announced that the average salary in Kyrgyzstan in January-November 2019 made KGS 16,586 (about USD 238), which shows an increase of 5.3% over the same period in 2018.
According to the National Statistics Committee’s data, during this period, the growth of accrued average wages was observed in enterprises and organizations of all types of economic activities, except for information and communication, as well as transport and storage of goods.
"The most significant increase in the growth rate of average monthly wages was observed in construction - 11.9%, professional, scientific and technical activities - 11.2%, hotels and restaurants - 10.2%, mining - 10.1%, water supply, waste treatment, recycling - 8.8%, as well as operations with real estate - 6.4%," the press service of the Committee reported.
At the same time, the sum of the living wage in Kyrgyzstan for 2019 was on average KGS 4,809 (about USD 69).
"The highest minimum subsistence level in Q3 2019 was in Jalal-Abad Oblast, with KGS 5,175.99 and the lowest in Talas Oblast with KGS 4,310.09. The minimum subsistence level in Russia is $170, in Moldova - $ 115, in Belarus - $110, in Azerbaijan - 105, in Kazakhstan - 77, in Ukraine - 84," the Committee’s report says.
Construction in Kyrgyzstan. According to the data for 2019, the share of the construction sector occupies 29% of Kyrgyzstan’s GDP.
At the presentation of the development strategy the country’s construction sector for 2019-2030, Prime Minister Mukhammedkalyi Abylgaziev specified that if the country's GDP is KGS 600 billion, the construction sector accounts for KGS 172 billion.
"We see the importance of the construction sector in the country's economy. Today we are adopting a strategy, aimed at solving problems in this sector, amending legislative acts and attract investors," the Kyrgyz PM added.
Meanwhile, the Construction Strategy has been adopted. This week, the Kyrgyz Government adopted the Strategy of Development of the Construction Sector for 2020-2030.
At the presentation of the Construction Strategy, Head of the State Agency for Architecture, Construction and Housing and Communal Services Baktybek Abdiyev said 10 of its main objectives have been developed. All these goals were published in the press this week.
The over-fulfilled plan of the State Tax Service. In 2019, the State Tax Service under the Government of the Kyrgyz Republic collected in the local budget KGS 17 billion 518.7 million of taxes and payments.
The established plan has been fulfilled by 101.3%, or exceeded by KGS 231.7 million.
According to data, compared to 2018, revenues to the local budget increased by KGS 2 billion 845.7 million, or 19.4%.
Besides, in 2019 the amount of property tax and land tax was KGS 2 billion 950.1 million. Of these, transport tax amounted to KGS 842.9 million (the plan was fulfilled by 104.4%), real estate tax KGS 878.5 million (107.5%), land tax KGS 1 billion 228.7 million (111.3%).
India's interest is growing. This week, New Delhi, the capital of India, hosted a Tourist Road Show, which attracted a lot of attention of Indian travel companies to Kyrgyzstan.
The event was organized by the Embassy of Kyrgyzstan in India together with the Department of Tourism of the country and the Federation of Indian Chambers of Commerce and Industry (FICCI).
“As part of this event, Director of the Tourism Department Maksat Damir uulu made a presentation on the tourism potential of Kyrgyzstan.
In his speech, Maksat Damir uulu stressed the Kyrgyz Republic is currently making every effort to significantly increase the number of tourists, adding that India is the third country in the world in outbound tourism after China and the United States,” the press service of the Kyrgyz Foreign Ministry said.
Kyrgyz Ambassador to India Asein Isayev also attended the Road Show. He stressed the Embassy is always open for cooperation as a partner for travel companies planning to attract Indian tourists, including investments in the tourism industry of Kyrgyzstan.
Customs violations. For 12 months of 2019, law enforcement subdivisions of the State Customs Service of the Kyrgyz Republic revealed 1893 violations in the field of customs legislation.
Of them:
1. 1,668 facts were registered in the Unified Register of Violations. This is 158 facts more as compared to the same period of 2018.
At the same time, there were collected penalties and the value of goods in the amount of KGS 9 million; customs payments were paid in the amount of KGS 178.1 million.
2. There are 225 facts registered in the Unified Register of Crimes and Misdemeanours, which is 76 facts more compared to the same period of 2018.
Losses to the state budget of the Kyrgyz Republic on initiated criminal cases and denied materials were compensated for KGS 56.7 million.
The total amount of additional revenue to the state budget of the Kyrgyz Republic made KGS 243.9 million.
Kabar News Agency
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