Bloggers have been granted tax breaks, whilst the tax burden on gold mining has been increased

The State Tax Service of Kyrgyzstan has commented on changes to tax policy affecting several sectors of the economy, including bloggers and gold mining companies. Almambet Shykmamatov, Chairman of the State Tax Service, stated that the decisions reflect the general logic of redistributing the tax burden, taking into account the revenue structure of the various sectors.

According to him, the introduction of tax holidays for bloggers caused the greatest public outcry; however, another element – the increase in revenue from the gold mining sector –

went almost unnoticed in the debate.

Shykmamatov noted that the increase is linked to the rise in global gold prices and the emergence of windfall profits among mining companies.

“We raised the rates slightly and have collected approximately 10 billion more this year. This is fair: as prices rise, taxes must be adjusted,” he said.

Separately, the head of the State Tax Service provided figures on taxes paid by bloggers. According to him, this concerns around 40 market participants who derive income from advertising activities.
He emphasised that the total tax revenue from this category remains extremely small compared to the country’s overall budget.

“These 40 bloggers pay a total of only around 1.2 million KGS. By way of comparison: this year we are collecting around 370 billion KGS in taxes,” said Shykmamatov.

According to him, the introduction of tax holidays for bloggers is linked to the specific nature of the digital economy, where income is concentrated amongst a limited number of participants, whilst the market model itself is shaped by consumer demand and advertising mechanisms.

He also noted that public reaction to changes often distorts the scale of individual decisions, as the focus shifts to the most visible categories of taxpayers.

Overall, as the head of the State Tax Service emphasised, the state’s tax policy is geared towards long-term economic effects and the need to stimulate the development of specific sectors whilst simultaneously regulating excessively profitable segments of the economy.