New bill contains risks for VAT payers, IBC Committee says

On December 18, 2019, the IBC Fiscal Policy Committee members discussed business comments on amendments to the Tax Code of the Kyrgyz Republic proposed by a group of MPs.

The meeting held at the IBC requests was attended by Deputy Chairman of the State Tax Service Iskender Asylkulov and the STS senior officials.

The main comments of the business concerned the introduction of a new form of tax control — a control survey, as well as raid tax control. Moreover, the right to conduct a survey is also planned to be granted to local authorities.

According to business, a lot of reasons have been proposed for conducting raid tax control including envisaged to check the registration, clarify the location of taxpayers, the presence of cash registers, the timeliness of reports on trade operations, etc.

In addition, during the raid tax control it is planned to carry out an inventory of the remaining goods.

According to business, the new bill contains risks for VAT payers and needs to be improved.

Following the meeting, the IBC comments and suggestions will be submitted to the bill initiators and will be considered at the next discussion of the bill.

The draft law “On Amending Certain Legislative Acts of the Kyrgyz Republic (Tax Code and Code on Violations)” can be found at: http://kenesh.kg/ru/draftlaw/564102/show