Creative Industries Park: No general decision on types of activities made
The state and the Association of Creative Industries have not yet come to a consensus on the list of types of creative professions. Daniyar Amanaliev announced at a consultative meeting of the Investment Council.
According to him, IT is a promising industry. Now everything comes down to the fact that there are requirements that companies must be export ones. And companies that create their own product first sell it to nearby customers. Because of this, it turns out that they cannot get into the Hi-Tech Park and take advantage of its tax advantages.
«IT companies that create their products really need a different tax regime, and other creative industries that want to become export ones, but now need a special tax regime. In a traditional economy, in production, for example, wages are a very small percentage. In the creative economy, salaries are 80 percent of expenses. Both the Social Fund deductions and the income tax are such that this industry, in principle, cannot operate outside the shadow economy. Otherwise, the cost increases by one and a half times. And the Creative Industries Park is such a good consensus, in which companies will begin to be legalized, and the state will begin to collect more taxes,» Daniyar Amanaliev said.
He recalled that the president supported the idea. Last year, a decree was issued to support the country’s innovative development. It specifically states that the creative economy is a priority area of the economy. The concept of its development, the law on the Creative Industries Park (CIP) and changes to tax legislation regarding tax rates and social contributions for CIP have been adopted. A resolution has even been adopted to create a Creative Industries Park. The only question left is to adopt the list of creative activities.
«And then we reached a dead end. I am grateful that the Investment Council is now involved in the process. Now we have negotiations where everyone on the state side has forgotten that the goal is to develop the creative economy. It’s just that individuals are very afraid that some taxes will begin to decline. They don’t take legalization into account at all. And they want to include in the list only industries that do not exist in Kyrgyzstan at all. If this happens, then the idea makes no sense. It will be simply profanation. And now the role of the Investment Council is important. It can talk to the state and listen, perhaps less emotionally than we do. On the other hand, explain positions to us somewhere more precisely. And we, as a business, have more confidence in the neutral intermediary represented by the Investment Council,» he concluded.