“Shadow activity in the garment industry is a serious problem. We understand and know this, as we communicate with many entrepreneurs,” he noted.
According to Isabekov, the issue of legalization has become particularly important due to increasing control over exports to Russia. He emphasized that the Russian side requires all supplies to be made in accordance with the legislation and with the payment of all taxes.
“Russia has also intensified control and demands that taxes be paid in accordance with the law. When importing, value-added tax must be paid. We, in turn, are also tightening the requirements for VAT payment at the border,” he added.
The Deputy Head of the State Tax Service also noted that business representatives acknowledge that they often reported only part of their employees in the past.
“For example, if a person had 20 employees, they would show only two or three in their reports — this is what they themselves admitted,” Isabekov pointed out.
He urged the industry not to return to past violations but to start working “from a new page.”
“Remembering the past and raising these issues again will not bring any benefit. We want the entire industry to start with a clean slate,” he emphasized.
According to Isabekov, about 10,000 to 13,000 workers are registered in the garment industry, for whom income tax is paid. However, actual employment estimates in the industry are significantly higher — from 100,000 to 200,000 people.
“We hope to officially reflect at least 50,000 to 100,000 people. Since these insurance contributions are the future pension provision for citizens,” he stated.
In addition to tax administration, the legalization of employment is also important for the social protection of workers, Isabekov added. Even small insurance contributions matter for future pensions, and an increase in the number of officially employed citizens allows the government to expand opportunities for increasing pension payments.
