Review of the Tax System in the Kyrgyz Republic
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.
| Main Author: | |
|---|---|
| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-07-05
|
| Subjects: | REVENUE ADMINISTRATION, TAX REGULATIONS REFORMS, PEACE, JUSTICE AND STRONG INSTITUTIONS, SDG 16, TAX REVENUE, TAX POLICIES, |
| Online Access: | http://documents.worldbank.org/curated/en/099060624221026206/P1679211778fce0c1aeb7102e8ec1c4b9b https://hdl.handle.net/10986/41827 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| id |
dig-okr-1098641827 |
|---|---|
| record_format |
koha |
| spelling |
dig-okr-10986418272024-07-17T02:20:30Z Review of the Tax System in the Kyrgyz Republic World Bank REVENUE ADMINISTRATION TAX REGULATIONS REFORMS PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 16 TAX REVENUE TAX POLICIES 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. 2024-07-05T20:34:59Z 2024-07-05T20:34:59Z 2024-07-05 Report http://documents.worldbank.org/curated/en/099060624221026206/P1679211778fce0c1aeb7102e8ec1c4b9b https://hdl.handle.net/10986/41827 English en_US CC BY-NC 3.0 IGO https://creativecommons.org/licenses/by-nc/3.0/igo World Bank application/pdf text/plain Washington, DC: World Bank |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
REVENUE ADMINISTRATION TAX REGULATIONS REFORMS PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 16 TAX REVENUE TAX POLICIES REVENUE ADMINISTRATION TAX REGULATIONS REFORMS PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 16 TAX REVENUE TAX POLICIES |
| spellingShingle |
REVENUE ADMINISTRATION TAX REGULATIONS REFORMS PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 16 TAX REVENUE TAX POLICIES REVENUE ADMINISTRATION TAX REGULATIONS REFORMS PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 16 TAX REVENUE TAX POLICIES World Bank Review of the Tax System in the Kyrgyz Republic |
| description |
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. |
| format |
Report |
| topic_facet |
REVENUE ADMINISTRATION TAX REGULATIONS REFORMS PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 16 TAX REVENUE TAX POLICIES |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Review of the Tax System in the Kyrgyz Republic |
| title_short |
Review of the Tax System in the Kyrgyz Republic |
| title_full |
Review of the Tax System in the Kyrgyz Republic |
| title_fullStr |
Review of the Tax System in the Kyrgyz Republic |
| title_full_unstemmed |
Review of the Tax System in the Kyrgyz Republic |
| title_sort |
review of the tax system in the kyrgyz republic |
| publisher |
Washington, DC: World Bank |
| publishDate |
2024-07-05 |
| url |
http://documents.worldbank.org/curated/en/099060624221026206/P1679211778fce0c1aeb7102e8ec1c4b9b https://hdl.handle.net/10986/41827 |
| work_keys_str_mv |
AT worldbank reviewofthetaxsysteminthekyrgyzrepublic |
| _version_ |
1806032047234351104 |