A Moratorium on Inspections of Entrepreneurs in Kyrgyzstan

According to the Decree signed by Sadyr Japarov, President of Kyrgyzstan, a moratorium is to be introduced on inspection of the activities of entrepreneurs from January 1 to December 31, 2023, in the country serving to create favourable business and investment climate, support the activities of business entities, guarantee their legal protection, prevent unreasonable interference in the activities of business entities, ensure the openness of law enforcement bodies’ activities while inspecting business activities of entrepreneurs, and promote the development of private entrepreneurship in Kyrgyzstan.

Problems existing in the field of state regulation of entrepreneurial activity are noted to negatively affect the development of entrepreneurship and business, as well as cause a decrease in the business activity of the population, and local and foreign investors.

Problems arise as a result of a large number of inspections and the abuse of power by law enforcement bodies, and tax and regulatory authorities, causing complaints by representatives of a small, medium, and large businesses, as well as commercial banks.

There are facts of monetary extortions during unreasonable, duplicating, or even illegal checks of entrepreneurs.

The Cabinet of Ministers of the Kyrgyz Republic is instructed to introduce a temporary ban, i.e., the moratorium on inspections of a small, medium, and large-sized businesses, including commercial banks, by law enforcement agencies and authorized bodies entitled to conduct inspections of business entities, for the period January 1, 2023 – December 31, 2023. Unreasonable inspections by law enforcement agencies or authorized bodies entitled to carry out inspections that cause harm to the rights and legitimate interests of the entities will be considered the improper performance of official duties and will incur disciplinary liability or even dismissal from their positions.

The Cabinet of Ministers together with authorized bodies, heads of local state administrations, and mayors of Bishkek and Osh should conduct a broad information campaign on the introduction of a moratorium and provide advisory assistance to business entities on the issues of compliance with the legislation of the Kyrgyz Republic under the established procedures.

A moratorium is thought to strengthen the growth of entrepreneurship, attract investment and improve the business environment in Kyrgyzstan.