SDG & Tax Incentives in Kyrgyzstan

One of the key instruments that the Kyrgyz Government is using to engage and attract private investment is tax incentives. These are significant in scale, estimated to cost around 5% of GDP in foregone revenue, and in 2020 it reached 32,3 billion som. Yet, the systems to monitor their use and impact, manage their effectiveness, and report on their costs and benefits, are underdeveloped.

To address this challenge, the Ministry of Economy and Commerce (MoEC), through its INFF, is drafting and introducing an article into the new Tax Code on principles of tax incentives effectiveness, which establishes a provision of tax incentives for promoting the sustainable development of the country.

To support the Ministry, UNDP mapped the tax incentives provided by the Government over the last five years against the Sustainable Development Goals (SDGs). This report provides an overview of the mapping exercise and shows the distribution of tax incentives for the private sector across all SDGs.