Kyrgyzstan’s economic week – Oct. 22-27, 2018

The future of VAT. The Ministry of Economy of the Kyrgyz Republic submitted for public discussion a draft resolution on amending some decisions of the Government of the Kyrgyz Republic “On approval of tax reporting forms on value-added tax and excise tax, the procedure for their completion and submission” dated July 14, 2015.

In connection with the adoption by the Jogorku Kenesh of the Law of the Kyrgyz Republic “On Amendments to the Tax Code of the Kyrgyz Republic” dated June 27, 2018, changes were made to change the size of the reduction of the tax liability on VAT for entities engaged in industrial processing of agricultural products of domestic production from 35% to 80%.

Export to Uzbekistan. In January-September 2018, the export of electricity to Uzbekistan amounted to 754 million kWh at a price of 2-2.4 cents in the amount of 16.2 million US dollars.

According to data of Deputy Chairman of the State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic Aitmamat Kadyrbayev, compared with 2017, exports decreased by 450 million kWh. This is due to the fact that in 2017 the flow of water into the Toktogul reservoir was greater.

“Electric Power Stations OJSC” provided the generation of the volumes of electricity necessary for domestic consumption. Thus, electricity generation in January-September 2018 amounted to 10.8 billion kWh, or 0.6% more than in January-September 2017,” said Kadyrbayev.

Debtors. The State Committee for Industry, Energy and Subsoil Use of the Kyrgyz Republic pays a lot of attention to the work of distribution companies, since the financial condition of the industry depends on them.

According to data of Kadyrbaev, Deputy Chairman of the Committee for Environmental Protection, in January-September 2018, 8.3 billion kWh of electricity was supplied to the distribution companies network, 180.2 million kWh more than in January-September 2017.

“At the same time, electric power losses in the distribution companies networks amounted to 963.8 million kWh or 11.7%. This is less than the established standard by 0.1% of the standard (11.8%) and 0.6% less than in January-September 2017 (12.3%). As of October 1, 2018, consumer receivables to distribution companies amount to 1.1 billion from the beginning of 2018 (as of January 1, 2018 1.65 billion soms) by 557.6 million soms or 33.9%, ”said Kadyrbayev.

Ukraine’s complaints regarding Kyrgyzstan. Ukraine has launched complaints at the World Trade Organization to challenge anti-dumping duties imposed by Armenia and Kyrgyzstan on certain types of Ukrainian steel pipes.

Ukraine said the two countries, both members of the Russia-dominated Eurasian Economic Union, should have phased out duties that were "higher than necessary, erroneous and based on deficient rulings, procedures and provisions".

Ukraine has already lodged a similar WTO complaint against a third member of the customs union, Kazakhstan. Countries accused of breaking the WTO rules have 60 days to settle the matter or Ukraine could ask the WTO to adjudicate.

Products for export. Kyrgyzstan plans to export more than 600 thousand tons of agricultural products in 2018.

Erkinbek Choduyev, Deputy Minister of Agriculture, Food Industry and Land Reclamation told that last year more than 500 thousand tons of agricultural products were exported both to the Eurasian Economic Union countries and to the third countries.

“Today more than 400 thousand tons have been exported. For example, among vegetables are cabbage, carrots - more than 122 thousand tons, fruits - more than 59.5 thousand tons, dried fruits - more than 59.7 thousand tons, nuts and pistachios more than 11 thousand tons,” Choduev said.

This year it is planned to increase exports up to 600 thousand tons at the expense of beans and cotton.

Economists in France. The 12th World Trade Promotion Organizations Conference started this week in France.

According to the Agency for the Promotion and Protection of Investments of the Kyrgyz Republic, the Kyrgyz delegation, within the framework of participation in the conference, held a series of meetings with international partners to discuss opportunities for cooperation.