Bishkek, Sep. 02, 2018. /Кабар/. Kyrgyz President Sooronbay Jeebekov called businessmen from Turkey to invest in Kyrgyzstan’s economy during the Kyrgyz-Turkish business forum in Bishkek, which was also attended by President of the Republic of Turkey Recep Tayyip Erdogan, who is on an official visit to Kyrgyzstan, today, on September 2.
The business forum, which is aimed at increasing the cooperation potential between the two countries and determining further prospects for interaction, is attended by leading companies of Turkey and Kyrgyzstan in different spheres, representatives of relevant state bodies and international organizations, the press service of the Kyrgyz President’s Office reported.
“Now it is time to give a new impetus to the development of the economic cooperation between our countries. Mustafa Kemal Atatürk said: ‘No nation can ignore economy, which is the core of life, happiness and welfare’. Your participation in today’s forum increases mutual trust between businessmen of the two countries and gives a new impetus to our cooperation’s development”, Jeenbekov said.
The Kyrgyz President pointed out that in 1994 the trade volume was only $20 million. Within 23 years this rate became 18 times as high, and last year amounted to $356 million. Jeenbekov also added that the country’s potential in the sphere of trade cooperation is not being fully realized.
The country leader noted that the investment cooperation between the two countries is developing. Since Kyrgyzstan gained independence hundreds of projects have been realized with the participation of Turkish capital. At present more than 600 joint Kyrgyz-Turkish enterprises are active in Kyrgyzstan. Since 1995 direct investments in excess of $500 million have been attracted from Turkey to Kyrgyzstan.
“It is obvious that this indicator is not the limit for us. Today the most favorable conditions have been created for business in Kyrgyzstan. To date, the procedure of business registration has been simplified. It requires less than 3 days and few documents. As a result of fiscal reforms, the most liberal tax regime has been established in the region. Tax rates in Kyrgyzstan are much lower than in some countries of the region. For example, in Kyrgyzstan value-added tax is 12 percents, tax on income — 10 percents, revenue-based levy — 10 percents. While agricultural producers, trade-logistics centers, and machine and tractor stations are entirely exempt from tax on income”, the President noted.
Jeenbekov pointed out that starting from September of this year value-added tax will only be 2.4 percent for enterprises processing domestic agricultural raw materials in Kyrgyzstan. For the purposes of developing regions, the notion “preferential types of concessional taxation of industry” has been introduced. In this regard, in the populated areas of the regions, defined by the Government, enterprises are entirely exempt from property and land taxes from 5 to 10 years.
The Kyrgyz Republic gives priority to processing agricultural products, energy, light and processing industry, tourism.
“Further, reforms on liberalizing investment laws, restricting interference in activities of businesses and respecting contract law”, Jeenbekov stressed.
He noted that systemic measures for fighting against corruption are being carried out in the country. Close attention is given to the stability of created conditions. As of taxes, there is an option available – “stable regime”. New enterprises are exempt from inspections for 3 years. There is currently a free exchange-rate regime in the country. There are no restrictions on foreign currency sales and purchases, export and import of capital. Imports of technological equipment are exempt from customs fees.
Low-cost and skilled labor force, cheap electricity are available to foreign investors.
“Kyrgyzstan has the lowest electricity tariffs — for legal entities 3.17 cents, for owners of private businesses — 1.44 cents. No visa is required for citizens of 58 countries for the period of 60 days. Turkey is also among these countries”, the country leader stressed.
In addition, he noted the important points for businesses. First, the Kyrgyz Republic is located at the intersection of the main trade routes of the continent. Almost 50 percents of the globe’s population lives within the radius of a three-hour flight from Bishkek.
Secondly, Kyrgyzstan is a member to the Eurasian Economic Union. 183 million people live within the borders of this union. Membership in the EEU provides an opportunity to Kyrgyzstani producers for free turnover of their goods and services in Russia, Kazakhstan, Belarus, and Armenia. Tariff and non-tariff barriers have been eliminated, which is why goods produced in Kyrgyzstan have great advantages over goods, produced in third countries.
Thirdly, in 2016 Kyrgyzstan was granted GSP+ status by the European Union. It gives Kyrgyzstani producers an opportunity to export their products with zero tariff rates for more than 6 thousand commodity items.
The country leader called upon representatives of Turkish enterprises, willing to do business in the Kyrgyz Republic, to invest in Kyrgyzstan.
“Kyrgyzstan will create all the necessary conditions for your businesses to be successful. It is a priority for us to attract not only Turkish capital, but also technologies of the leading Turkish companies. I am convinced that today’s forum will provide an opportunity to reach mutually beneficial agreements in new areas. I believe that in the upcoming years we will be able to considerably increase the amount of the Turkish capital in Kyrgyzstan’s economy”, Jeenbekov stressed, expressing, once again, his appreciation to President Recep Tayyip Erdogan for visiting Kyrgyzstan.
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