The growth of e-commerce is maintaining its upward trend in Central Asia. This is encouraging for all the stakeholders.
Here are a couple of recent news stories:
The total volume of e-commerce in the EAEU countries has already reached $80 billion
Deputy Director of the Department of Customs, Tariff and Non-Tariff Regulation of the EEC Askat Bekov spoke about the development of the e-commerce market in the EAEU ahead of the Eurasian Economic Forum 2024 .
According to him, the development of electronic commerce has a positive effect on the formation of a single economic space in the EAEU.
The corresponding growth is provided by marketplaces, through which millions of buyers purchase goods from hundreds of thousands of sellers from all over the Eurasian Union.
“The total volume of e-commerce in the EAEU countries has already reached $80 billion. The total share in retail is about 13%,” Bekov shared.
According to the EEC, e-commerce on the EAEU marketplaces provides employment support in the member states, engages small and medium businesses, and improves storage and logistics infrastructure.
However, on the other hand, companies with enormous market power are emerging that can have a significant impact on the economy.
As reported by the EEC, at the Eurasian Economic Forum 2024, which will be held on September 30 in Yerevan, it is planned to discuss the risks and prospects of special regulation of electronic trading platforms, the formation of fair conditions for electronic trade from abroad, as well as the protection of the interests of all subjects of electronic trade. [Tazabek]
E-commerce tax collection in Kyrgyzstan increased 10-fold in January-August
The revenue of companies in the field of e-commerce exceeded 2 billion soms in January-August 2024, according to the data of the Ministry of Finance report.
The volume of budget revenues from the e-commerce tax amounted to 40.6 million soms. With a tax rate of 2% of revenue, total revenues in the e-commerce sector amounted to 2 billion soms.
E-commerce tax collection increased by 9.8 times in January-August 2024 compared to January-August 2023.
For comparison, in January-August 2023, the budget received 4.1 million soms from the e-commerce tax, and for the whole of 2023 – 13.5 million soms.
The tax rate for activities in the field of electronic commerce is 2% of revenue from the provision of services and sale of goods in electronic form.
The tax is paid by organizations and individual entrepreneurs who sell goods using a domain name or IP address registered in the Kyrgyz Republic.
Those paying this tax are required to make payments for all transactions through a specially opened bank account, including through an electronic wallet and other virtual payment instruments linked to such an account. [Tazabek] — nCa, 4 October 2024 (featured image credit Envision Commerce)