Baltabaev noted that farmers in Kyrgyzstan, like in other countries, do not pay taxes when selling their products at markets. However, when products enter retail chains, they are subject to taxation at a rate of 12% VAT, which makes local goods less competitive compared to imports.
According to him, "For many years we have raised this issue. Now, according to the new decision, agricultural products sold in retail chains will be taxed at a reduced VAT rate — 80% of the standard rate. This will create opportunities for greater presence of local goods on supermarket shelves."
Baltabaev also added that the share of retail chains in the Kyrgyz market is about 10%, while around 80% of sales occur in traditional markets. In his opinion, the new measure will strengthen the positions of local producers and enhance the competitiveness of their products.
The resolution and the list of agricultural products to which the reduced VAT rate of 80% applies will be in effect until January 1, 2030, and will be available only to Tazabek subscribers.
