The President of the Kyrgyz Republic, Sadyr Japarov, has initiated a draft law concerning amendments to a number of legislative acts in the field of taxes, social insurance, and non-tax revenues. The president's press secretary, Askat Alagozov, announced this on his social media page. The new law proposes a series of tax and insurance relief measures for individuals and legal entities.
The main goal of the draft law is to implement the presidential decree dated December 5, 2025, which is dedicated to supporting certain sectors of the economy. This is expected to help reduce the tax burden, activate production processes, and legalize certain types of activities.
Among the key changes is the abolition of value-added tax for equipment, technologies, reagents, and semi-finished products used in the jewelry industry. Legal and physical entities will be exempt from paying sales tax on vehicles until January 1, 2029, and there is also a provision for the write-off of tax debts of individuals arising from operations involving the re-export of vehicles until January 1, 2026.
Additionally, the sale of vehicles produced or assembled in the country, as well as components, will not be subject to taxation. Tax rates for operations outside Kyrgyzstan and bank transactions through foreign credit institutions have been reduced to 0.1 percent.
For workers in the sewing and textile production sector, the minimum income tax until January 1, 2030, is set at 1 percent of the average salary, and unified insurance contribution rates will apply to all participants in this industry. For property tenants, the insurance contribution rate is 6 percent of the truncated average salary.
The law also allows for the legalization of previously imported or produced stocks of jewelry made from precious metals within two months, during which a moratorium on inspections by tax authorities is introduced. Licensing for the retail sale of alcoholic beverages is abolished, and the consideration of tax disputes is excluded from the jurisdiction of arbitration courts.
Amendments have also been made to the Code of Offenses of the Kyrgyz Republic. A new article has been introduced that establishes liability for activities involving jewelry without special registration, and the liability for the illegal movement of goods and vehicles across the borders of EAEU countries has been tightened. For repeated offenses, increased fines and confiscation of goods and vehicles are provided.
The law was approved by the Jogorku Kenesh of the Kyrgyz Republic on December 24, 2025.
