In order to change this situation and stimulate gold processing at the local level, the State Tax Service is launching a set of support measures for jewelers.
According to Isabekov, by processing part of the gold mined within the country, Kyrgyzstan will not only be able to meet its domestic needs but also significantly increase exports. "If the industry has potential, it needs to be developed. We have enormous opportunities in the jewelry sector," noted the Deputy Chairman of the State Tax Service.
The Unofficial Sector of Jewelers
One of the key problems until recently was the operation of many jewelers in the "shadows"."Some entrepreneurs admitted that they were tired of pressure from criminal structures. They expressed their willingness to pay taxes and work legally," added Isabekov.
Legalization of Jewelry Worth 17 Billion
To bring the sector out of the shadows, a legalization campaign was launched, which has already shown significant results. Currently, more than 1,600 documents have been registered through the electronic invoice system, allowing for the legalization of jewelry assets worth nearly 17 billion soms. During the campaign, the cost of state hallmarking of products was reduced from 34 to 10 soms per unit, which also supported businesses.Government Support for Jewelers
Now the government is moving towards direct financial support for the sector. Kubanychbek Isabekov reported that a project to provide jewelers with preferential loans at 6% per annum is being considered in the Cabinet of Ministers and is expected to be signed soon. Additionally, by the president's directive, a discount for domestic producers on the purchase of gold from the state will be provided, amounting to 2% of the international price of the London fixing. For comparison, in Uzbekistan, such a discount is 1%.In addition to the discount, jewelers will be able to purchase gold products in installments, which will help address the issue of insufficient working capital. To support technological progress, customs benefits will also be introduced for the import of equipment and raw materials necessary for production but not produced in Kyrgyzstan. These measures will help small enterprises transform into modern competitive factories.
Expected Multiplicative Effect
The government expects a multiplicative effect from these measures. The essence is that by providing preferential conditions today, the budget will receive significantly more tomorrow. "The logic is simple: we provide the producer with gold at a discount and cheap loans, they create jewelry with high added value, and the taxes from their sales return to the budget in significant volumes," explained Isabekov.At the same time, the tax service insists on complete transparency in the sector. Starting from March 1, control over the circulation of precious items will be strengthened: each product must be accompanied by supporting documents. Kubanychbek Isabekov noted that the State Tax Service has previously discussed all conditions with jewelers to avoid misunderstandings and ensure stable growth in the industry, while ensuring that jobs are official.
