President of the Kyrgyz Republic Sadyr Japarov has signed a decree regarding the support of certain economic sectors, particularly the jewelry and textile industries. This decree aims to support small and medium-sized enterprises and is based on Article 71 of the Constitution.
The Cabinet of Ministers of the Kyrgyz Republic is tasked with: 1) preparing and submitting to the Jogorku Kenesh a draft law within a month, which should include:
– provision of benefits on customs duties and taxes on the import of equipment and technologies, as well as reagents for jewelry production and for exporting jewelry to international exhibitions;
– the possibility of legalizing previously imported or produced jewelry made from precious metals with a temporary moratorium on inspections by tax authorities;
– delegating the functions of testing and hallmarking jewelry to domestic producers on a voluntary basis, with the possibility of reducing assay fees;
– exemption from taxes for individuals and legal entities when selling motor vehicles for a period of three years;
– exemption from taxes for individuals, except for those registered as individual entrepreneurs, on income from the sale of vehicles until January 1, 2026;
– exemption from sales tax on vehicles and their components produced in Kyrgyzstan;
– reduction of income tax rates and insurance contributions for the textile industry and small and medium-sized enterprises;
– establishing a unified tax rate at 0.1% for activities outside the country;
– introducing a transaction tax of 0.1% for operations through foreign banks;
2) ensuring access for domestic jewelers to raw materials from the State Fund of Precious Metals and Stones with a 2% discount from the London fixing;
3) selling precious metals to producers in the form of raw materials without the right to subsequent resale, with payment deferred up to 180 days;
4) in cooperation with the National Bank and the joint-stock companies "Aiyl Bank" and "Eldik Bank," developing a mechanism for preferential lending for jewelers;
5) organizing a laboratory for testing and hallmarking jewelry at Manas International Airport, as well as considering the possibility of creating similar laboratories at the airports of Osh and Issyk-Kul;
6) accelerating mutual recognition of hallmarks to expand the markets for jewelry within the framework of the Eurasian Economic Union;
7) implementing a digital information exchange system to simplify requirements for the jewelry industry in the fight against terrorism financing and the legalization of criminal proceeds.
Control over the implementation of the decree is entrusted to the management of monitoring the execution of decisions of the President and Government of the Kyrgyz Republic. The decree comes into force from the moment of its official publication.
