The Minister of Economy and Commerce, Bakyt Sydykov, reported that this initiative is aimed at implementing the presidential decree "On Measures to Support Certain Sectors of the Economy" and improving legislation in this area.
According to the draft law, the following measures are proposed:
- exemption from VAT for equipment, technologies, reagents, and semi-finished products necessary for jewelry production imported into the territory of Kyrgyzstan;
- until January 1, 2029, individuals engaged in the buying and selling of vehicles will be exempt from income tax, while legal entities will be exempt from sales tax and VAT;
- individuals not registered as individual entrepreneurs will be exempt from tax obligations, including penalties and sanctions, on income received before January 1, 2026, from the sale of motor vehicles;
- enterprises producing or assembling vehicles in Kyrgyzstan will be exempt from sales tax;
- income tax rates for the garment industry will be reduced to 1%, and insurance contributions will be lowered from 4,400 soms to 4,040 soms until January 1, 2030;
- mandatory confiscation of vehicles for illegal transportation of goods across the state border with member states of the Eurasian Economic Union, including vehicles used for this purpose;
- provision of the opportunity to legalize the remaining previously imported or produced jewelry made from precious metals within two months, with a moratorium on inspections by tax authorities during the legalization period;
- on a voluntary basis, delegating the functions of domestic jewelry manufacturers to test and hallmark their products, excluding the state hallmark, with the possibility of reducing hallmarking fees;
- reduction of insurance contribution rates for small and medium-sized businesses;
- establishment of a unified tax rate of 0.1% for activities conducted outside of Kyrgyzstan;
- establishment of tax rates on transactions at 0.1% for those conducted through banks of foreign states.
