Kyrgyzstan will not change the law on the Park of High Technologies

08 December, 2021

An agreement was reached between the state and the private sector. Deputy Minister of Digital Development Azamat Kalmatov sent a letter to the Presidential Administration to end control over the implementation of the amendment bill.

In October 2021, the Ministry of Digital Development of the Republic submitted for public discussion whether it is worth eliminating the export component of the High-Tech Park, its supervisory board, the supreme governing body, and an expert council. The IT community opposed the initiative.

"The new cabinet of ministers has withdrawn the decision of the previous cabinet on amendments to the Law" On the Park of High Technologies of the Kyrgyz Republic ", - says the founder of the Park of High Technologies Azis Abakirov.

The Hi-Tech Park of the Kyrgyz Republic is a zone with a special tax and legal regime for residents. Its feature is a reference point for the export economy. Potential residents are required that 80% of the company's income comes from the export of its technologies, services or products.

In the draft law on changes, it was proposed to exclude the minimum export threshold in order to create more favorable conditions for representatives of the IT industry. However, according to IT experts, the abolition potentially opens up an opportunity for unscrupulous companies to organize schemes for tax evasion. Moreover, such a high threshold stimulated the development of IT exports in Kyrgyzstan, which distinguished the state from its neighbors.

The management of the high-tech park today operates according to a system of checks and balances thanks to two bodies: the supervisory board - the supreme governing body, which consists of representatives of the legislative, executive authorities, IT specialists, and an expert council. If, in accordance with the bill, these two bodies were abolished, the management of the Park would be concentrated in one directorate, the head of which was appointed by the head of the cabinet of ministers. Such an approach, according to industry experts, would lead to a rollback from corporate governance principles.