Review of the Tax System in the Kyrgyz Republic

doi:https://doi.org/10.1596/41827

Publication:
Review of the Tax System in the Kyrgyz Republic

dc.contributor.author	World Bank
dc.date.accessioned	2024-07-05T20:34:59Z
dc.date.available	2024-07-05T20:34:59Z
dc.date.issued	2024-07-05
dc.description.abstract	Tax revenues to GDP ratio in the Kyrgyz Republic is higher than most lower middle income countries at above 28 percent of GDP in 2022, but complex tax structure, narrow base and remaining weaknesses in tax administration pose risks to sustainability and create unequal tax burden across taxpayers. Revenue performance in 2021-23 improved significantly due to improvements in tax administration, but significant share of the improved tax collection is contributed by VAT on imports which is likely attributed to trade diversion after imposition of trade sanctions on Russia. The transit trade driven by the sanctions has increased substantially during 2022-2023 period. If the relative share of imports would have stayed at the actual 2021 level (64.5 percent), we estimate that the transit trade contributed to increase in VAT revenues of KGS 25.2 billion (equivalent of 2.6 percent of GDP) in 2022, and an estimated KGS 37.9 billion in additional VAT revenues (3.3 percent of estimated GDP) in 2023. These one-off exceptional revenues should be isolated and treated separately when making medium-to-longer run tax revenue forecasts and when considering tax policies. This report looks into three major issues, tax gap and how it could be reasonably reduced over the medium term; needed tax policy changes; and how administration provisions in tax legislation can support the same level of tax revenues, with more equitable distribution of tax burden promoting growth and lowering compliance costs. The report touches briefly on tax administration key issues, as ongoing tax administration reform agenda supported by the World Bank funded project is currently underway.	en
dc.identifier	http://documents.worldbank.org/curated/en/099060624221026206/P1679211778fce0c1aeb7102e8ec1c4b9b
dc.identifier.doi	10.1596/41827
dc.identifier.uri	https://hdl.handle.net/10986/41827
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	REVENUE ADMINISTRATION
dc.subject	TAX REGULATIONS REFORMS
dc.subject	PEACE, JUSTICE AND STRONG INSTITUTIONS
dc.subject	SDG 16
dc.subject	TAX REVENUE
dc.subject	TAX POLICIES
dc.title	Review of the Tax System in the Kyrgyz Republic	en
dc.type	Report
dspace.entity.type	Publication
okr.crossref.title	Review of the Tax System in the Kyrgyz Republic
okr.date.disclosure	2024-07-05
okr.date.lastmodified	2024-06-07T00:00:00Z	en
okr.doctype	Report
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/099060624221026206/P1679211778fce0c1aeb7102e8ec1c4b9b
okr.guid	099060624221026206
okr.identifier.docmid	P167921-778fcec0-74d0-4c2c-aeb7-02e8ec1c4b9b
okr.identifier.doi	https://doi.org/10.1596/41827
okr.identifier.externaldocumentum	34336696
okr.identifier.internaldocumentum	34336696
okr.identifier.report	190967
okr.import.id	4699
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099060624221026206/pdf/P1679211778fce0c1aeb7102e8ec1c4b9b.pdf	en
okr.region.administrative	Europe and Central Asia
okr.region.country	Kyrgyz Republic
okr.sector	Sub-National Government
okr.theme	Public Administration,Economic Policy,Fiscal Policy,Public Sector Management,E-Government, incl. e-services,Tax policy
okr.topic	Law and Development::Tax Law
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies
okr.topic	Governance::E-Government
okr.topic	Macroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unit	EFI-ECA-GOV-FM & PS-1 (EECG1)