KYRGYZSTAN TODAY Policy briefs on - Department of Geography

More documents

Recommendations

Info

The World Bank estimates that it takes 15 days to start a business. Additional information: 26 days in the region, 14.9 days in countries that are part of the Organisation for Economic Co-operation and Development, with a global average of 48 days. Notably, trade liberalization in Kyrgyzstan has brought positive results. Freedom of trade in the country is 71.4 percent , which is higher than the world’s average. These statistical data tend to become even better since they relate to mostly non-tariff barriers, which include excise on imported goods, rigorous state regulation of commercial enterprises, restricted licensing of entrepreneurial activities, as well as ineffective and corrupt custom clearance. The extent to which business can be done in Kyrgyzstan is clearly demonstrated in Table 1 (source: Doing Business, World Bank). Table 1 Ease of... Doing business in 2009, Country ranking Doing business in 2008, Country ranking Change in ranking Doing business 68 99 +31 Starting a business 31 50 +19 Dealing with construction permits 58 170 +112 Employing Workers 81 80 -1 Registering Property 52 54 +2 Getting Credit 28 25 -3 Protecting Investors 11 33 +22 Paying Taxes 155 152 -3 Trading Across Borders 181 180 -1 Enforcing Contracts 52 51 -1 Closing a Business 137 131 -6 164
On the subject of barriers, it is also important to consider a number of additional difficult issues stipulated by the following major adverse characteristics of Kyrgyzstan, both physical and economic: • Small internal market; • Remote geographical location (no access to sea ports); • Relatively poor mineral resources. The major issues that have not yet been solved are: • High tax rates; • Rigorous tax administration; • Frequent and unjustified inspections by authorities; • Imperfect legislative and regulatory frameworks in the area of private enterprise; • Unstable and unpredictable policy of regulating private enterprise; • Bureaucratic customs procedures (for example, long customs examination and other delays at the border); • Corruption that permeates all public offices. Recommendations With the goal of ensuring business development in Kyrgyzstan, the first priority should be creating ways to help decreased the influence of existing administrative barriers. 1. High tax load. The tax rates in Kyrgyzstan are two to approximately six times higher than average rates in the region and in the world, respectively. The tax burden is extremely unequal across the types and forms of businesses: currently, 60-80 percent of taxes are gathered from 180-200 enterprises, out of a total of nearly 500,000 formallyregistered business entities. These include 782 medium scale enterprises, 7,689 small ones, more than 163,000 individual entities, and 300,000 farms. Current state fiscal policy does not favor the accumulation of the means that enterprises need for their investments, nor does it favor competitive production. The current tax code, with its high level of tax payments, significantly contributes to an increase in domestic production costs, prices, and inflation, and also locks down export development. Unfortunately, the current fiscal policy of Kyrgyzstan is the main cause that corruption is flourishing in the economy, and explains why small and mid-scale enterprises decide to change to the “shadow economy.” The conclusions above have been confirmed by the World Bank’s study as part of its Doing Business Project (See Table 2 for data on the taxes, payable or deductible by mid-scale enterprises for a number of years). Table 2 Indicator Kyrgyzstan Region OECD Payments (quantity) 75 47,2 13,4 Time (hours) 202 366,8 210,5 Profit tax ( percent of profit) 3,0 11,8 17,5 Salary taxes/payments ( percent of profit) 23,7 26,1 24,4 Other taxes ( percent of profit) 34,7 10,2 3,4 Total tax rate ( percent of profit) 61,4 48,1 45,3 165
Page 1 and 2:
Social Research Center American Uni
Page 3 and 4:
The Social Research Center (SRC) at
Page 5 and 6:
What needs to be studied is whether
Page 7 and 8:
policy, but on the politics of loya
Page 9 and 10:
them set up with the sole aim of ac
Page 11 and 12:
has been made. As democratization i
Page 13 and 14:
For a country where the main active
Page 15 and 16:
seemingly happen to form regionally
Page 17 and 18:
• Support the development of self
Page 19 and 20:
synonymous with civil society. Thes
Page 21 and 22:
and to the fact that it is popularl
Page 23 and 24:
in a politically-advanced society w
Page 25 and 26:
Galina Plakhotnikova, Aida Kurbanov
Page 27 and 28:
For such individuals, personal sati
Page 29 and 30:
to focus on donors’ priorities, w
Page 31 and 32:
Sheradil Baktygulov, Independent Ex
Page 33 and 34:
By having good knowledge and unders
Page 35 and 36:
In this context, the Kyrgyz state v
Page 37 and 38:
6. Produce a training program for g
Page 39 and 40:
among decision-makers and in genera
Page 41 and 42:
200. This means that about USD 20 m
Page 43 and 44:
New Middle Classes Classes are anta
Page 45 and 46:
References and Sources 1. Bates R.
Page 47 and 48:
There were attempts to build the pa
Page 49 and 50:
Kyrgyzstan, they did not have a cle
Page 51 and 52:
impossible. Even though the Moldova
Page 53 and 54:
Summing up, it should be emphasized
Page 55 and 56:
24. Romedi Arkvint’s Speech//Kiev
Page 57 and 58:
- national programs and projects; -
Page 59 and 60:
awareness of implementation of thes
Page 61 and 62:
also tried to participate in develo
Page 63 and 64:
and its regional programs, to devel
Page 65 and 66:
development in both urban and rural
Page 67 and 68:
the participants of public hearings
Page 69 and 70:
Social Development as the spokesper
Page 71 and 72:
Nookatbek Idrisov, Director of the
Page 73 and 74:
membership fees, donations, grants)
Page 75 and 76:
and (2) the Law on Charity doesn’
Page 77 and 78:
6. To change numbering of items in
Page 79 and 80:
its founders, members, participants
Page 81 and 82:
and property at its balance-sheet v
Page 83 and 84:
Kanykey Jailobaeva, PhD Candidate a
Page 85 and 86:
NGOs to involve the government and
Page 87 and 88:
over the implementation of its init
Page 89 and 90:
His advice on the legislative basis
Page 91 and 92:
presence of those major elements of
Page 93 and 94:
arises; this problem is now apparen
Page 95 and 96:
not a decision-maker, but rather
Page 97 and 98:
Some believe and argue that Kyrgyz
Page 99 and 100:
Central and Eastern European and Ba
Page 101 and 102:
the vocational-education system sho
Page 103 and 104:
force and its profile, since all th
Page 105 and 106:
is employed in jobs that do not req
Page 107 and 108:
educational institutions elaborate
Page 109 and 110:
naturally expect to return to their
Page 111 and 112:
emittances for granted at the backb
Page 113 and 114: Global Donor Platform for Rural Dev
Page 115 and 116: marginalized communities, do not li
Page 117 and 118: Simplifying the process of getting
Page 119 and 120: Nurdin Tynaev, Director of the Publ
Page 121 and 122: Federation”, which requires migra
Page 123 and 124: Recommendations • Improve the imm
Page 125 and 126: In Kyrgyzstan, there are the Spirit
Page 127 and 128: Following are some examples of mode
Page 129 and 130: Timur Kozukulov, Senior lecturer, r
Page 131 and 132: 2. These problems are also typical
Page 133 and 134: Shakhnoza Madaeva, Candidate of phi
Page 135 and 136: women). About 50 percent of student
Page 137 and 138: 3. International institutions and i
Page 139 and 140: present this image of woman as an i
Page 141 and 142: you from a single person created of
Page 143 and 144: standpoint of such an approach, one
Page 145 and 146: Types and scale of judicial corrupt
Page 147 and 148: The evidence demonstrates that the
Page 149 and 150: other indirect features of judicial
Page 151 and 152: albeit very unlikely. However, many
Page 153 and 154: Many factors contribute to this cor
Page 155 and 156: also collapsed, and the academic co
Page 157 and 158: To university students: 1. To chang
Page 159 and 160: protectionism, unfair competition,
Page 161 and 162: authority to levy tax backlogs with
Page 163: Kubanychbek Omuraliev, Independent
Page 167 and 168: and other similar is ten times grea
Page 169 and 170: participation in economic activitie
Page 171 and 172: • adopt laws that recognize and p
Page 173 and 174: Emil Nasritdinov. Discrimination of
show all

KYRGYZSTAN TODAY Policy briefs on - Department of Geography

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?