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Digitalization of Cafes and Restaurants in Kyrgyzstan Increased Tax Revenues by 60%

Following the introduction of a digital accounting system in Osh’s food service establishments, tax revenues from the sector have increased by 60%, according to the city administration, citing data from the Kyrgyzstan State Tax Service.

The increase is one of the first results of a pilot project aimed at digitalizing restaurants, cafés, and other food service businesses. The initiative was launched in March in Bishkek, Osh, and Manas.

The new fiscal system automatically records both cash and cashless payments, with information on every transaction transmitted to the tax authorities' database in real time. According to the project developers, this improves the transparency of financial operations and helps reduce the shadow economy.

To date, more than 95% of food service establishments in Osh have been connected to the digital system.

The city administration emphasizes that the implementation of digital accounting does not create additional burdens for businesses. Instead, it helps establish a level playing field, strengthens tax compliance, and increases the transparency of business operations.

The pilot project is regarded as an important step in the digital transformation of Kyrgyzstan’s food service industry and the modernization of the country’s tax administration.