activity of unregistered noncommercial organizations in Kyrgyzstan.  The Committee for Public 
Associations and Information Policy Affairs of the Jogorku Kenesh of the Kyrgyz Republic is 
planning to hold a sitting to consider Resolution 315 upon their return from parliamentary vacations in 
September. ICNL will continue to monitor the situation closely and will assist NGOs in their struggle 
to preserve their freedoms from further encroachment by the Government. 
On May 24, 2002, President Akaev of Kyrgyzstan submitted for Parliamentary consideration the draft 
law On Public Meetings, Processions, and Demonstrations as part of a package of draft laws designed 
to reduce security threats, political extremism, civil disobedience, and corruption. Upon the request of 
the Department for Public Association and Human Rights of the Apparatus of Jogorku Kenesh of the 
Kyrgyz Republic, the ICNL partner Yuri Khvan participated in the discussion of the final version of 
the draft law where he provided technical assistance on legal issues. 
Work on Drafting Amendments to Kyrgyz Tax Code  
On April 29, a public hearing was held by the Committee for Public Association and Information 
Policy Affairs on the Draft Law  On Introduction of Amendments and Additions to the Tax Code of 
the Kyrgyz Republic.  The draft law seeks to bring the taxation of noncommercial and charitable 
organizations in accordance with international best practices while preventing abuse of tax benefits by 
unscrupulous organizations. The purpose of the public hearing was to solicit public input on the draft 
bill of amendments which has been prepared by a working group that consisted of parliamentarians, 
senior government officials, tax experts, and ICNL. The hearing was attended by NGOs, 
representatives of international organizations, mass media, and working group members. ICNL 
Partner Yuri Khvan, as an executive secretary of the working group, presented a brief report on the 
key changes introduced by the draft law and the drafting process. ICNL commentaries to the existing 
Tax Code provisions regulating taxation of NGOs have also been distributed. The proposed bill 
elicited a lively discussion among the participants who raised a number of questions regarding the 
draft amendments. The participants were given until May 10  to submit their proposals and comments 
to the working group. After considering the comments, the Committee submitted the draft law to the 
speaker of the Parliament to be forwarded to the Government for expert consideration prior to being 
placed on the Parliament's agenda in the fall. 
On May 8, ICNL partner Yuri Khvan participated at a roundtable organized by Interbilim to discuss 
the Draft Law  On Introduction of Amendments and Additions to the Tax Code of the Kyrgyz 
Republic.  The roundtable was attended by NGOs, representatives of international organizations, and 
mass media. The ICNL partner made a presentation on the draft law and explained to the participants 
the new benefits available to noncommercial and charitable organizations under the draft law as well 
as the mechanisms existing in the bill against the abuse of tax privileges by unscrupulous 
organizations. ICNL commentaries to the existing Tax Code provisions regulating taxation of NGOs 
have also been distributed. The participants raised many questions about the criteria used to define 
charitable and noncommercial organizations and charitable activities and purposes as well as the VAT 
exemptions available under the law. The attending NGOs suggested that additional changes be made 
in the draft law. They also expressed an interest in lobbying the deputies to adopt the proposed 
amendments to the Tax Code.  
On May 17 18, 2002, ICNL in cooperation with the Chamber of Tax Consultants, ICNL conducted a 
two day educational workshop at Lake Issyk Kul on NGO taxation and accounting and the proposed 
draft law  On Amendments to the Tax Code of the Kyrgyz Republic.   The seminar was sponsored by 
the Global Training Development/USAID and was attended by NGO participants from all regions of 
Kyrgyzstan who were selected with the assistance of Counterpart. The importance of the event was 
underscored by the fact that many NGOs, particularly in the regions, lack the knowledge about their 
rights and obligations under the Tax Code and risk significant fines and penalties for noncompliance. 
The seminar examined tax and accounting requirements imposed by Kyrgyz legislation as well as the 
draft amendments to the Tax Code affecting noncommercial and charitable organizations. In a plenary 
session held on the second day of the workshop, ICNL partner Yuri Khvan made a presentation on the 
new draft law and distributed ICNL commentaries on the issue. As the result of the discussion on the 
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