Kyrgyz Republic Tax Legislation Influence on the Local Automotive Industry Efficiency

Abstract

The issue of tax regulation of the automotive industry is relevant, as in the context of a dynamically developing global economy and rapid changes in the automotive industry, the issues of tax regulation become key to the effective functioning of the industry in any country, including the Kyrgyz Republic. The study aims to identify the relationship between tax legislation and the efficiency of the automotive industry in Kyrgyzstan, considering the current challenges and trends in the industry. The study employed various methods, including analytical, statistical, functional, system analysis, deduction, synthesis and comparison. The study analysed the impact of tax legislation on the efficiency of the automotive industry in the Kyrgyz Republic. The focus was on identifying the key aspects of tax regulation that have a direct impact on various areas of industry, including the investment climate, innovation activity and overall competitiveness of enterprises. A systematic analysis of existing tax mechanisms was conducted, the current state of the automotive industry in the country was analysed, and the impact of external factors such as dependence on imports, economic stability and changes in global trends, especially in the context of the development of electric vehicles, was identified. Tax mechanisms in the automotive industry, including customs duties, excise duties, and value-added taxes (VAT) are studied. Particular attention is devoted to the changes in tax legislation introduced in 2023 aimed at exempting parts supplies from VAT. The results of the study indicate the positive impact of such measures on the efficiency of car production.

References

[1] Adandohoin, Kodjo (2021). Tax transition in developing countries: Do value added tax and excises really work? International Economics and Economic Policy, 18: 379-424. DOI: 10.1007/s10368-021-00492-8
[2] Akanov, Doolotbek Kuseiynovych, and Zhakypov Nurlan Zhanyshevych (2022). “Green” transport as one of the ways of sustainable urban development. Bulletin of the National Academy of Sciences of the Kyrgyz Republic, 5: 28-32. Available at: https://ilim.naskr.kg/index.php/main/article/download/96/84
[3] Akkucuk, Ulas (2023). Automotive industry challenges: Crises, disruptions, and taxes. In: Managing Inflation and Supply Chain Disruptions in the Global Economy (pp. 268-280). Hershey, PA: IGI Global. DOI:10.4018/978-1-6684-5876-1.ch017
[4] Böckin, Daniel, and Anne-Marie Tillman (2019). Environmental assessment of additive manufacturing in the automotive industry. Journal of Cleaner Production, 226: 977-987. DOI: 10.1016/j.jclepro.2019.04.086
[5] Chochia, Archil, David Ramiro Troitiño, Tanel Kerikmäe, and Olga Shumilo (2018). Enlargement to the UK, the referendum of 1975 and the position of Margaret Thatcher. Brexit: History, Reasoning and Perspectives 1: 115-139. DOI: 10.1007/978-3-319-73414-9_7
[6] Cnossen, Sijbren (2023). Excise taxation to preserve health and to protect the environment: A review. Canadian Tax Journal 70: 159-184. Available at: https://ssrn.com/abstract=4401102
[7] Das, Gouranga, Ginting Edimon, Horridge Mark, and Yamano Takashi (2023). Growth constraints and structural diversification for Kyrgyzstan economy: Policy analysis of key reforms and its implications. Available at: https://www.econstor.eu/handle/10419/270307
[8] Dzhailova, Asel et al. (2023). Kyrgyzstan’s economy in the context of deepening economic integration. In: ESG Management of the Development of the Green Economy in Central Asia (pp. 181-189). Cham: Springer. DOI: 10.1007/978-3-031-46525-3_20
[9] Fedeli, Silvia., and Luisa Giuriato (2023). Value added tax non‐compliance in the car market. Fiscal Studies, 44(1): 85-104. DOI: 10.1111/1475-5890.12315
[10] Gashi, Bled, Asllani Gani, and Boqolli Liam (2018). The effect of tax structure in economic growth. International Journal of Economics and Business Administration, 6(2): 56-67. Available at: https://www.um.edu.mt/library/oar/handle/123456789/43727
[11] Geczy, Christopher, Jessica Jeffers, David Musto, and Anne Tucker (2021). Contracts with (social) benefits: The implementation of impact investing. Journal of Financial Economics, 142(2): 697-718. DOI: 10.1016/j.jfineco.2021.01.006
[12] Generalov, Andrei, and Olga Generalova-Kutuzova (2021). Economics, legal, political and social environment of entrepreneurs in Kyrgyzstan. In: Engines of Economic Prosperity: Creating Innovation and Economic Opportunities through Entrepreneurship (pp. 337-357). Cham: Palgrave Macmillan. DOI: 10.1007/978-3-030-76088-5_18
[13] Górecki, Maciej A., and Natalia Letki (2021). Social norms moderate the effect of tax system on tax evasion: Evidence from a large-scale survey experiment. Journal of Business Ethics, 172: 727-746. DOI:10.1007/s10551-020-04502-8
[14] Gunash, Nasrullayeva, Mehriban Magerramova, Mehriban Yusifova, Sevinc Magerramova, and Rahimova Samaya (2024). Economic rationale for calculating enterprise costs using the direct-costing system. WSEAS Transactions on Computer Research, 12: 99–104.
[15] Hakim, Taufik Abd (2020). Direct versus indirect taxes: Impact on economic growth and total tax revenue. International Journal of Financial Research, 11(2): 146-153. DOI: 10.5430/ijfr.v11n2p146
[16] Jakubik, Petr, Seyit Kerimkhulle, and Saida Teleuova (2017). How to anticipate recession via transport indices. Ekonomicky Casopis 65(10): 972-990. Available at: https://www.sav.sk/journals/uploads/1204140610%2017%20Jakubik%20a%20kol.%20+%20RS.pdf
[17] Jensen, Anders (2022). Employment structure and the rise of the modern tax system. American Economic Review, 112(1): 213-234. DOI: 10.1257/aer.20191528
[18] Jomartova, Sholpan, Talgat Mazakov, Daryn Mukhaev, Aigerim Mazakova, and Gauhar Tolegen (2021). Intelligent system for assessing the socio-economic situation in the region. Communications in Computer and Information Science, 1463: 437–447. DOI: 10.1007/978-3-030-88113-9_35
[19] Kerimkulov, Seit, Saida Teleuova, and Gulzhan Tazhbenova (2015). Measuring chaotic and cyclic fluctuations of cass freight index: Expenditures. Actual Problems of Economics, 171(9): 434-445.
[20] Kondev, Bozhil et al. (2023). Putting the foot down: Accelerating EV uptake in Kyrgyzstan. Transport Policy, 131: 87-96. DOI:10.1016/j.tranpol.2022.12.007
[21] Kydykov, Azizbek, and Madina Myrzalieva (2021). The use of ecological transport as a way to promote green logistics in Kyrgyzstan. Public Procurement and Logistics Observatory. Available at: https://www.pplo.kg/en/repository/75/
[22] Llopis-Albert, Francisco Carlos Rubio, and Francisco Valero (2021). Impact of digital transformation on the automotive industry. Technological Forecasting and Social Change, 162: 120343. DOI:10.1016/j.techfore.2020.120343
[23] Musiralieva, Madina (2016). Factors affecting auto industry development in Kyrgyzstan. Scientist of the 21st Century, 17(4-2): 3-5. Available at: http://www.uch21vek.com/assets/uch21vek_4_2_2016.pdf#page=3
[24] Spytska, Liana. 2023. Prospects for the legalization of cryptocurrency in Ukraine, based on the experience of other countries. Social and Legal Studios, 6(4): 226-232. DOI: 10.32518/sals4.2023.226
[25] Tax Code of the Kyrgyz Republic No. 3. (2022). Available at: https://cbd.minjust.gov.kg/112340?refId=1286442#st_296
[26] Trencher, Gregory (2020). Strategies to accelerate the production and diffusion of fuel cell electric vehicles: Experiences from California. Energy Reports, 6: 2503-2519. DOI: 10.1016/j.egyr.2020.09.008
[27] Yaroshenko, Oleg, Olena Moskalenko, Andrey Sliusar, and Natalya Vapnyarchuk (2018). Commercial secret as an object of labour relations: Foreign and international experience. Journal of Legal, Ethical and Regulatory Issues, 21(1): 1-10. Available at: https://www.abacademies.org/articles/Commercial-secret-as-an-object-of-labour-relations-foreign-and-international-experience-1544-0044-21-S1-253.pdf
[28] Law of the Kyrgyz Republic No. 78 “On amendments to certain legislative acts of the Kyrgyz Republic in the field of taxation” (2023). Available at: https://cbd.minjust.gov.kg/112552?refId=1251787
Published
2024-09-30
How to Cite
ABILPEISSOV, Kanash. Kyrgyz Republic Tax Legislation Influence on the Local Automotive Industry Efficiency. Theoretical and Practical Research in Economic Fields, [S.l.], v. 15, n. 3, p. 709 - 717, sep. 2024. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/8603>. Date accessed: 21 nov. 2024. doi: https://doi.org/10.14505/tpref.v15.3(31).15.