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Kyrgyzstan Review, 10 years ago

[26.02.23] Excerpt from the Interview with M. Ismailov, Deputy Finance Minister, Head of Governmental Commission on Development of the Draft on Real Estate Tax:

- How will real estate be evaluated?
- Provisions on it are still being elaborated, but the main clauses are as follows: according to the draft (we are talking of the draft so far), housing will be evaluated by categories. Say, all apartments of 105th series built in 19XX year, with similar engineering characteristics will fall into the same category. As about real estate, used for entrepreneurial purposes, all property of the legal entities with the square area under 30 thousand sq.m will be evaluated by common standards. Everything exceeding these parameters, will be evaluated on an individual basis by evaluation committee: deputies of the local keneshes, representatives of state administration, state architecture services. Probably, while the draft is being considered, someone will propose to include representatives of the public into this committee, but in my opinion, deputies are the ones, fulfilling the representative functions.
- How much is to be paid in taxes?
- Consider the most important aspect the minimum exempt value of real estate! Preliminary estimation shows that typical 1,2,3-room apartments wont pay anything at all. Parliament deputies will set two limits the upper tax rate (1.5 % of the real estate value in the draft) and the minimum estate value exempt of taxation. We suppose it will be about 2.5 thousand dollars a year. State council is authorized to raise this amount up to 5 thousand dollars. If discussed in the parliament, the amount can go up to 6-8 thousand dollars a year. State keneshes will be the ones to set the tax rate within 0.1 1.5% of the real estate value...
- How will the local authorities determine the exemption limit? Individually for every house?
- Of course not! It will be done collectively for all the cities (overall 21 cities in the country). The draft implies that the local keneshes must hold public discussions and all decisions will be made collectively. The main purpose of this draft is to tax the rich for the good of the poor

Delo , February 26, 2003

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