According to the press service of the Ministry of Agriculture of Kyrgyzstan, the initiated state support measures contribute to significant progress in the field of agricultural cooperatives. With the help of preferential loans, leasing programs, and tax benefits, small farms are uniting to create large commodity-producing structures.
The joint activities of farmers lead to increased production volumes and improved product quality, as well as broader access to domestic and international markets. Cooperation is becoming an important tool for increasing incomes and sustainable development in rural areas.
The Ministry has developed and implemented various regulations aimed at promoting the development of cooperatives. In particular, access to land plots has been simplified — cooperatives can lease land without the need for competitive procedures, based on direct contracts.
Agricultural cooperatives also receive a number of tax benefits:
exemption from profit tax on production activities;exemption from VAT.
At the same time:
cooperative members pay only 2% income tax;employees — 10%.
These measures are a significant element of state support for the cooperative movement.
The Cabinet of Ministers has also approved the Agricultural Cooperation Development Program for 2023-2027, which aims to provide the population with safe and quality products, enhance the investment and export potential of the agro-industrial sector, and increase the volumes of import substitution through cluster development.
