The Ministry of Economy of the Kyrgyz Republic has initiated the introduction of labeling for cement, both locally produced and imported.
It is planned that labeling will begin on June 1, and from December 1, the circulation of unlabeled products will be prohibited.
The justification for the draft resolution of the Cabinet of Ministers of the Kyrgyz Republic "On the introduction of labeling with a molecular marker for certain goods" states the following:
The purpose of developing this project is to implement Article 4 of the Tax Code of the Kyrgyz Republic, as well as to increase tax revenues to the budget and legalize the market for the production and import of cement into the country. To achieve this goal, it is planned to strengthen control and tax administration through labeling this product with a molecular marker.
The draft resolution provides for the approval of the Rules for labeling cement with a molecular marker in Kyrgyzstan, establishing the mandatory labeling of this product starting from June 1, 2026.
According to the proposed norms, cement produced in the Kyrgyz Republic or imported into the country is subject to labeling, except in cases where the cement is produced for export.
There are 5 main cement plants operating in Kyrgyzstan, which contributed 3.03 billion soms to the budget in 2025. Below is information about cement manufacturers.
No
Manufacturer Name
Annual Capacity (million tons)
Tax Revenues in 2025 (thousand soms)
1
OAO "Kant Cement Plant"
1.2
1,082.39
2
OsOO "Sinzhi-Pirim"
1.0
116.17
3
ZAO "Southern Kyrgyz Cement"
2.0
1,301.38
4
OsOO "Southern Construction Materials Plant"
(Aravan Cement Plant)
1.2
446.54
5
OsOO "Terek-Tash"
3.0
92.51
Total
8.4
3,039.0
The data indicates that, despite comparable or even greater production capacity of some cement plants, tax revenues from their activities vary significantly. This may indicate a risk of concealing actual production and sales volumes, which in turn leads to insufficient tax payments.
The total production capacity of domestic cement plants is about 8.4 million tons per year. According to statistics, the actual cement production volume was 3.12 million tons in 2024 and 4.25 million tons in 2025 (detailed data is provided in the table below).
Thus, the production capacities of cement plants exceed the current needs of the domestic market by more than twice, even considering the growth in construction in 2025.
Years
2019
2020
2021
2022
2023
2024
2025
Cement Production Volume (million tons, data from the National Statistics Committee)
2.0
1.88
2.4
2.67
2.96
3.12
4.25
Construction Growth Rate (data from open sources)
10.6%
7.8%
-4.8%
11.2%
14.3%
31.1%
21.1%
In 2025, Kyrgyzstan also imported 1.1 million tons of cement, with the main suppliers being Uzbekistan (0.69 million tons) and Kazakhstan (0.42 million tons) (data on cement imports by year is provided in the table below).
Years
2022
2023
2024
2025
Import Volume (million tons)
0.242
0.198
0.5
1.1
According to open data, the average wholesale price of cement at Kyrgyzstan's plants is about 6,500 soms per ton, while the average cost of imported cement from Kazakhstan is 4,700 soms per ton. The price difference is approximately 1,800 soms per ton, which may indicate an undervaluation of the cost of imported cement.
Considering the volume of cement imports into the Kyrgyz Republic in 2025, potential losses in state budget revenues from VAT may amount to about 237.6 million soms per year due to the undervalued import cost.
To ensure control over production volumes, sales, and imports of cement, increase the transparency of its circulation, and improve tax administration, it is advisable to implement a cement labeling system using molecular markers.
The application of such a system will make the circulation of products more transparent at all stages, minimize concealment risks, and enhance the reliability of information about actual production, sales, and import volumes, which in turn will increase tax revenues by reducing shadow turnover.
According to preliminary forecasts, this measure could double the volume of the legal cement market within three years and increase tax revenues from producers by 3 billion soms per year.
The introduction of cement labeling will also help legalize related industries, such as concrete and reinforced concrete product manufacturing plants, which will ultimately lead to an increase in total tax revenues from these companies by 8 billion soms annually.
The labeling process involves adding a molecular marker in established concentrations to cement without changing its physicochemical properties and quality. The presence of the marker will be checked using special devices.
Considering the volume of cement imports into the Kyrgyz Republic in 2025, potential losses in state budget revenues from VAT may amount to about 237.6 million soms per year due to the undervalued import cost.
To ensure control over production volumes, sales, and imports of cement, increase the transparency of its circulation, and improve tax administration, it is advisable to implement a cement labeling system using molecular markers.
The application of such a system will make the circulation of products more transparent at all stages, minimize concealment risks, and enhance the reliability of information about actual production, sales, and import volumes, which in turn will increase tax revenues by reducing shadow turnover.
According to preliminary forecasts, this measure could double the volume of the legal cement market within three years and increase tax revenues from producers by 3 billion soms per year.
The introduction of cement labeling will also help legalize related industries, such as concrete and reinforced concrete product manufacturing plants, which will ultimately lead to an increase in total tax revenues from these companies by 8 billion soms annually.
The labeling process involves adding a molecular marker in established concentrations to cement without changing its physicochemical properties and quality. The presence of the marker will be checked using special devices.
The record from the Ministry of Economy of Kyrgyzstan proposes to introduce molecular labeling of cement first appeared on K-News.
