Automation of the tax system will enable a reduction of 1,000 inspectors over the course of a year

Almambet Shykmamatov, Chairman of the State Tax Service of Kyrgyzstan, announced plans to launch a new phase of tax system reform. According to him, almost a year ago, on the instructions of the president, large-scale changes began aimed at simplifying procedures for entrepreneurs and increasing the transparency of administration.

Phase one: simplification and digitization

In the first phase, electronic tax invoices were abolished for most goods, the mandatory use of cash registers was removed, digital processes were accelerated, bureaucracy was reduced, and an internal reorganization of the service was carried out. After 11 months, the tax service exceeded its annual plan for 2025: with an approved target of 268 billion KGS, the actual performance exceeded the plan by more than 30 billion.

Stage two: KEZET as a new control system

The second stage of reforms will start after the New Year holidays. Its key part will be the introduction of the KEZET electronic accounting module. The system, based on Estonian digital solutions, will automatically track the path of each product — from production or import to sale. The entire control function will be transferred to the module, which will eliminate the human factor and minimize corruption risks.

A test launch is scheduled for January 2026, with six months set aside for adaptation and training. Starting in May, the number of inspectors will be reduced: first by 500 people, then another 500 six months later. Of the current 3,400 employees, a thousand fewer will remain in a year.

Transition to a service model

The State Tax Service emphasizes that the reduction in staff will not lead to a weakening of control but, on the contrary, will increase efficiency. The service intends to completely abandon the punitive model and move to a service format—providing convenient digital tools, simple rules, and timely consulting support.

According to Shykmamatov, all reforms are aimed at developing entrepreneurship, especially small and medium-sized businesses. He noted that Kyrgyzstan already has some of the most favorable conditions for doing business in the CIS, and the upcoming changes should further simplify tax processes.