Eternal support of our suffering budget - taxes and customs. Almost 70 percent of revenues are generated at the expense of the State Tax Service (STS) and State Customs Service (SCS). For these purposes plans are written out, but they looked more like a dream. The situation in the economy makes it impossible to use imagination. Export figures are falling at Tokmak glass factory, south of the country suffers without trade with neighbors; tax debt of enterprises exceeds 1.7 billion soms. In a few days the only factory producing tobacco in Kyrgyzstan will be closed...
Without profits and advance payments
The Government entrusted the State Tax Service with important task: to collect 40.6 billion soms till the end of the year. Last year dreams on fees were about the same, but the plan was revised twice, as a result the level was lowered up to 37.5 billion soms. Likely, there will be significant changes in 2014 as well. Until May the situation with admission of tax could be called close to collapse.
"For five months of this year the revenue part of the national budget of the KR was executed at 91 percent and expenditures - at 97," the Finance Minister Olga Lavrova stated.
According to her, the backlog of tax revenue forecast for the STS and SCS for this period amounted to 2 billion 318 million soms. At the same time expenditures of the republican budget increased by 3 billion 432 million soms.
In May the situation with taxes was reversed. At the same time due to blocking of roads the customs service fell short of hundreds of millions soms. For the period of May-June miraculously taxes are collected with overfulfillment. But, in general, the situation on tax collection remains difficult. For 5 months of 2014 15 billion 820 million soms were raised with the forecast of 17 billion 89 million. Implementation of the plan for this period amounted to only 92.6 percent.
Income tax is in the risk group: on the results of 5 months on the basis of this kind the STS has collected only 52.3 percent (!). And this is a real reflection of the economic situation: the manufacturer does not receive income. And by the end of the year the situation is unlikely to change. "According to income tax there is no improvement. We conducted the analysis on control over the large taxpayers. About 300 companies are administrated. But, unfortunately, profits of a number of enterprises fell, they incur losses," said the Head of the STS Zamirbek Osmonov.
A number of other indicators don't look better. By the tax on income of mining companies in 5 months only 42.6 percent were collected, VAT on the produced goods and services on territory of the Kyrgyz Republic - 93.3 percent, by excise tax - 70.5 percent (by alcoholic beverages 61.1 percent were executed, tobacco - 53.4 percent), by the subsoil use tax - 88.9 percent.
The lack of import for customs officer is like a death. At the beginning of the year - bad weather, conflicts on the border and some of citizens are not better than enemies and bad weather: by the end of June the damage from blocking of Osh - Irkeshtam highway reached 180 million soms. More than a hundred of vehicles were stuck at the border with China. While Chinese businessmen began to reduce the amount of transport entering Kyrgyzstan, fearing of possible losses.
Unlike previous years, it will be impossible to squeeze the taxpayers this year to advantage. "The Parliament adopted in three readings the bill, banning the demand of advance amount from taxpayer," Zamirbek Osmonov said.
Neither jack-in-the-box, nor a drop in a glass...
The only tobacco production plant - Reemtsma in Kyrgyzstan will be closed in July. "Last week we met with the leadership of Reemtsma. This plant is the sole producer of tobacco products in Kyrgyzstan, but, unfortunately, they officially announced that they will close in July," said Zamirbek Osmonov.
Dynamics of Reemtsma production decline is observed every year, the amount of processing decreases. This enterprise was given a 10-year exclusive period, last year Kyrgyz tobacco was not processed at the factory.
In due time, the company intended to build a processing tobacco plant in the south. Now import of tobacco is cheaper than its production. Last year, the excise tax on tobacco barely reached 60 percent of the targets.
With alcohol is the opposite situation. Last year due to revocation of the license at the beginning of the year 6 plants didn't operate. In 2014 it is impossible to bring to light all the shadow incomes of these plants. "A lot of states that alcoholic sphere is in shade. We send a lot of resources into this industry now to increase revenues from excise taxes. Despite the fact that in summer people drink vodka not so much, we try to improve rates through the collection of excise duty on beer," says Zamirbek Osmonov.
Meanwhile tax debt of the enterprises amounts to 1 billion 788 million soms. And 439 million soms of them - uncollectible. In May it was reduced up to 20.3 million soms. For 5 months as a result of tax inspections, the budget received 369 million soms.
Almost 983 units of tax payment claims were brought to the accounts of taxpayers in the amount of 733.4 million soms, 1,057 of inventories of property valued at 578.7 million soms.
In judicial authorities were sent 516 materials in the amount of 280 million soms, including 207 on the materials in the amount of 138.6 million with judgments in favor of budget.
In addition, within a month campaign there were passed 6,345 judgments on the amount of 349.7 million soms, 681 administrative fines in the amount of 3 million soms were imposed, tax posts were set in 281 organizations with tax payable.
Despite the fact that new production in the country isn't expected, since May the forecast on tax collection exceeded by 50 million soms, since June - by another 70 million.
"We are actively working on land tax, strengthen tax administration of lessor. Lease of containers and vehicles is in deep shadow, we direct all the forces out to discover reserves in the construction industry. Especially in the first reading there was adopted a draft law that gives the right to switch to the contract form of taxation of construction companies, and it makes administration easier," Zamirbek Osmonov said.
Shady merchants for note
The State Tax Service says about gradual withdrawal of the patent system. "Experts speak about different level of shadow economy, but it is not less than 40 percent. One of the factors contributing to the expansion of shadow economy is the patent system. This system does not involve accounting. When patent holder's turnover reaches 4 million soms, we must stop granting patents and transfer them to the general regime, but as accounting isn't maintained, it is almost impossible to control," the Head of the STS says.
According to him, it is necessary to create equal conditions for business operations. "We must move away from the patent system. One of the key moments in the tax system is the principle of certainty, so we want to create interdepartmental commisssion, which will include representatives of business, and begin to develop a program in order business know beforehand when we switch from patents," he concluded.