Kyrgyzstan: Revolution Revisited
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Kyrgyzstan's tax agency accounted for nearly one-third of 55,000 state examinations conducted in 2005, according to the Investment Roundtable, a non-governmental organization. Kyrgyz business owners regularly complain about these inspections as a conduit for bribes to state inspectors. A recent study conducted by the Investment Roundtable estimated annual bribes to tax inspectors at $2.5 million. Annually tax inspectors check the third number of all the registered and active enterprises. At the same time, businesses themselves frequently violate the law by dodging import duties with a payment to customs officials of roughly half of the duty.
Create a semi-autonomous revenue agency to collect taxes and customs duties that would be run by a private company.

Reduce the number of annual tax inspections by up to ten times and lay off unnecessary tax and customs inspectors.

Register all tax inspections with the Office of the General Prosecutor to prevent illegitimate inspections.


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