Leonid Slutsky, the head of the LDPR party, has proposed an initiative that could significantly impact the textile industry in Kyrgyzstan. He suggests introducing VAT on imported light industry goods if similar products are already available in the Russian market. While this initiative aims to limit the influence of Western and Asian brands, it may also affect partner countries in the Eurasian Economic Union, particularly Kyrgyzstan.
The textile industry in Kyrgyzstan currently plays an important role in supplying clothing to the Russian market. For local producers, exports to Russia are the main sales channel, based on the principles of free movement of goods within the EAEU. The introduction of new tax barriers or mandatory quotas on "purely Russian" goods at 30% on marketplaces could create serious obstacles for Kyrgyz goods, which traditionally compete in the mid and low price segments.
Slutsky emphasizes the need to create a "fair market" where foreign companies must pay taxes on par with local producers. However, experts warn that vague wording could lead to producers from EAEU member countries also being subjected to "tax pressure." If this initiative does not take into account preferences within the union, it could not only increase clothing costs for Russians but also undermine economic ties with Kyrgyzstan, where tailors have been investing in quality and logistics for many years to successfully operate in the Russian market.
Additionally, the LDPR proposes to reduce marketplace commissions only for those companies that use Russian raw materials. This could negatively affect Kyrgyz enterprises that rely on imported fabrics, depriving them of competitive advantages on large online platforms such as Wildberries and Ozon.
