Tax exemptions were provided to support entrepreneurs in rural areas, Jeenbekov

Bishkek, Feb.12, 2020. /Kabar/. "Tax exemptions were provided to support entrepreneurs in rural areas," Kyrgyz President Sooronbay Jeenbekov said at the second meeting of the Committee for Industry and Entrepreneurship Development under the National Council for Sustainable Development.

The President noted over the past years, a number of tasks to support entrepreneurship in rural areas have been resolved, among which he named tangible tax exemptions.

"The value added tax for enterprises processing rural products has been reduced by 80%. For agricultural cooperatives, trade and logistics centers, machine and tractor stations, the property tax was reduced by 50%, and they were fully exempt from income tax. Production enterprises in rural areas have been exempted from four types of tax for the five-year period- income tax, profit tax, land tax and property tax," the Kyrgyz leader said.

Jeenbekov added income tax has been reduced for light industry enterprises with over 50 employees. If earlier each employee paid on average KGS 1500 (about $ 21), now this type of tax will be an average of KGS 400 (about $ 6).

For the same enterprises, social payments were reduced from 27% to 12%.

The head of state stressed a number of tasks to reduce administrative barriers have been completed. A two-year temporary moratorium on inspecting businesses was declared until January 2021.

The second meeting of the Committee for Industry and Entrepreneurship Development is taking place today in Bishkek with the participation of President Sooronbay Jeenbekov.

There are three issues at the meeting's agenda: the state of investment protection and observance of business entities’ rights, legal aspects of decriminalization of economic crimes, and the implementation of the legislation on protection of entrepreneurship by law enforcement agencies.

The event is attended by heads of state bodies and representatives of business community of the country.

The Committee’s meeting is expected to result in taking decisions, aimed at improving the conditions for doing business and increasing the investment attractiveness of the country.

The first meeting of the Committee for Industry and Entrepreneurship Development under the chairmanship of the Kyrgyz President was held on June 24, 2019.