Sadyr Japarov, the President of Kyrgyzstan, signed a decree regarding the support of certain sectors of the economy. This document, titled "On Measures to Support Certain Sectors of the Economy," aims at the comprehensive development of the jewelry and textile industries, as well as the support of small and medium-sized enterprises. The decree was issued in accordance with Article 71 of the Constitution of the Kyrgyz Republic.
The first point of the decree concerns the Cabinet of Ministers of the Kyrgyz Republic:
1) Within a month, a draft law must be submitted for consideration to the Jogorku Kenesh, which includes the following measures:
– introduction of benefits and preferences for customs payments and taxes on the import of equipment, technologies, reagents, and semi-finished products for jewelry production, as well as when exporting jewelry for participation in international exhibitions;
– legalization of the remaining previously imported or produced jewelry made from precious metals, with the establishment of a moratorium on inspections by tax authorities during the legalization period;
– the possibility for domestic producers of jewelry made from precious metals to conduct testing and hallmarking of products with their own mark confirming the assay (with the state assay mark remaining an exception), with the prospect of reducing assay fees;
– exemption of individuals and legal entities from paying taxes on the sale of motor vehicles for a period of three years;
– exemption of individuals, except for individual entrepreneurs, from tax obligations on income received before January 1, 2026, when selling motor vehicles;
– exemption from sales tax when selling vehicles and their components produced or assembled in the Kyrgyz Republic;
– reduction of income tax rates and insurance contribution tariffs for the textile industry, as well as for small and medium-sized enterprises;
– establishment of a single tax rate of 0.1% for activities conducted outside the Kyrgyz Republic;
– introduction of a transaction tax of 0.1% for transactions conducted through banks of foreign states;
2) Ensure simplified access for domestic jewelry producers to raw materials from the State Fund of Precious Metals and Stones at prices with a 2% discount from the fixing of the London Bullion Market Association;
3) Sell precious metals to jewelry producers in the form of raw materials without the right to resell based on a direct contract or through a commodity and raw materials exchange with the possibility of deferring payment for up to 180 days;
4) In cooperation with the National Bank of the Kyrgyz Republic and the joint-stock companies "Aiyl Bank" and "Eldik Bank," develop a mechanism for preferential lending for entities in the jewelry industry;
5) Create a laboratory for testing, analysis, and hallmarking of jewelry and other products made from precious metals at Manas International Airport, and also consider the feasibility of establishing such laboratories at the airports of Osh, Manas, and the Issyk-Kul branch of the OJSC "Manas International Airport," located in the special financial investment zone;
6) Accelerate the processes of mutual recognition of hallmarks to expand the markets for domestic jewelry products within the framework of the Agreement on the Specifics of Operations with Precious Metals and Stones in the Eurasian Economic Union;
7) To avoid duplication of requirements for entities in the jewelry industry in accordance with the laws of the Kyrgyz Republic on combating the financing of terrorism and the legalization of criminal proceeds, implement a system of digital information exchange to simplify the reporting process.
2. The control over the implementation of this decree shall be entrusted to the Department of Control over the Execution of Decisions of the President and the Cabinet of Ministers of the Administration of the President of the Kyrgyz Republic.
3. The decree comes into force from the moment of its official publication.
