According to Bakyt Sydykov, the Minister of Economy and Commerce, these changes are aimed at implementing the presidential decree regarding support for certain sectors of the economy, as well as improving the existing legislation.
The main provisions of the bill include:
- exemption from VAT for equipment, technologies, reagents, and semi-finished products intended for jewelry production imported into Kyrgyzstan;
- exemption of individuals engaged in buying and selling cars from income tax until January 1, 2029, and legal entities from sales tax and VAT;
- exemption of individuals not registered as individual entrepreneurs from taxes and penalties on income from the sale of motor vehicles received before January 1, 2026;
- exemption from sales tax for enterprises engaged in the production or assembly of motor vehicles in Kyrgyzstan;
- reduction of income tax rates to 1% and a decrease in insurance contributions from 4,400 soms to 4,040 soms for enterprises in the garment industry until January 1, 2030;
- introduction of mandatory confiscation of vehicles for illegal transportation of goods across the border with states that are members of the Eurasian Economic Union, including vehicles used for transportation;
- legalization of the remaining previously imported or produced jewelry made from precious metals with a moratorium on inspections by tax authorities during the legalization period;
- delegation to domestic jewelry manufacturers of the functions of testing and stamping products with their own stamp, excluding the state assay stamp, with consideration of the issue of reducing assay fees;
- reduction of insurance contribution rates for small and medium-sized enterprises;
- establishment of a single tax of 0.1% for activities conducted outside of Kyrgyzstan;
- establishment of a transaction tax of 0.1% for operations through banks of foreign states.
