The Ministry of Health proposes to increase taxes on unhealthy food and beverages

Арестова Татьяна Health / Exclusive
VK X OK WhatsApp Telegram

A meeting was held in Bishkek dedicated to improving excise regulation for certain products that negatively affect the health of citizens. According to the press service of the Ministry of Health of the Kyrgyz Republic, representatives of key government agencies participated in the event, including the Ministry of Economy and Commerce, the Ministry of Finance, as well as experts from WHO and UNICEF, alongside members of leading business associations in the country.

At the meeting, a new initiative from the Ministry of Health was presented, aimed at improving excise regulation concerning sugary drinks and products high in salt. Currently, there is an excise tax on sugary drinks in Kyrgyzstan amounting to 3 soms per liter; however, this rate does not take into account the difference in sugar content in products, leading to uniform taxation for drinks with varying sugar levels.

“The health of the population and nutrition-related issues are becoming increasingly relevant for the public health system. According to data from the National Statistical Committee for 2023, about 9% of children in Kyrgyzstan suffer from overweight, which is essentially one in eleven children. Additionally, 75% of children aged 6 to 23 months consume unhealthy food, and 78% regularly drink sugary beverages,” noted Deputy Minister of Health Temirbek Erkinov.

A differentiated excise tax system is planned to be implemented, where the rate will depend on the actual sugar content. The proposed excise scale includes:

– up to 5 g of sugar per 100 ml – 5 soms per liter
– 5–8 g of sugar per 100 ml – 7 soms per liter
– 8–11 g of sugar per 100 ml – 9 soms per liter
– over 11 g of sugar per 100 ml – 11 soms per liter
The Ministry of Health explains that the main goal of this model is to encourage manufacturers to reduce sugar content in their products, as well as to promote changes in consumer habits and reduce the consumption of high-sugar products.

It is also proposed to establish a fixed excise tax on energy drinks of 20 soms per liter due to their high concentration of sugar and caffeine, which negatively affects the health of young people. A similar approach will be applied to products high in salt, including items such as chips and salty snacks.

For products high in salt, the following excise scale is proposed:

– up to 1.2 g of salt per 100 g of product – 0 soms
– 1.2–1.5 g – 5 soms per 100 g
– 1.5–2.0 g – 10 soms per 100 g
– 2.0–2.5 g – 15 soms per 100 g
– over 2.5 g – 20 soms per 100 g
Participants in the discussion reviewed the parameters of the new model and its impact on citizens' health, as well as the potential economic consequences for producers and consumers. Business associations emphasized a number of comments and suggestions regarding the initiative.

Government agencies stressed that this proposal is part of a comprehensive state policy aimed at improving public health and combating non-communicable diseases. Representatives from WHO and UNICEF supported the Ministry of Health's initiative, highlighting the importance of reducing the consumption of high-sugar and high-salt products.

It was noted that all revenues from the new excise tax will be directed to the state budget, and the funds will be used to implement targeted programs in healthcare, including prevention, treatment, and strengthening the healthcare system. The Ministry will continue consultations with government agencies and businesses to develop balanced solutions for the further implementation of this initiative.
VK X OK WhatsApp Telegram

Read also: