Imperfections of VAT regulations hamper development of trade and service associations in the Kyrgyz Republic, reported R.Hulzen, head of the project for development of trade and service associations during the seminar on the topic held in “Pinara” hotel.
According to R. Hulzen, Kyrgyzstan has been and will be in the near future and agricultural country and development of agricultural associations is key to economic growth. At the present time productivity of the sector is very low – 52% of the labor force account for only 37% of GNP. Farmers encounter a number of problems such as lack of knowledge on effective production techniques, lack of capital, poor equipment, problems with the sale of the produce. He pointed out VAT as one of the major obstacles along with other legislative barriers such as imperfections of the “Law on Associations”, bureaucratic procedures and lack of farmers’ confidence in the system.
The project, proposed by the Germans, will facilitate development of agricultural sector in the Republic. Jalal-Abad, Naryn and Chui oblasts are among the pilot regions for project implementation. The project will last for five years and in the future involve all the regions of the country.
KNNA “Kabar”, July 02, 2003