The President instructed the Cabinet of Ministers to prepare a draft law for consideration by the Jogorku Kenesh within a month.
The changes pertain to Article 297 of the Tax Code of Kyrgyzstan, significantly expanding the list of goods exempt from VAT upon importation into the country.
Now let's examine what specific changes have occurred and who will be able to take advantage of the new benefits.
What will change in paragraph 1 of Article 297 of the Tax Code (exemption from VAT for own production needs):
| Previously exempted only: | The previous list has been expanded to include: |
| — metal-containing ores, concentrates, alloys, and refined metals | — equipment, technologies, reagents, and semi-finished products for the production of jewelry |
| Import was exempt only under items 2, 3, 11, 13, 14, 17, 20–23, 26 of part 1 of Article 297 | Now it is also exempt under item 27 of part 1 of Article 297 — this includes hundreds of positions of high-tech equipment and materials |
Other significant changes in VAT exemption upon import:
| Item 27 | Was not exempt | Now fully exempt from VAT (includes technological equipment, components, chemicals, etc.) |
Who will benefit from the changes:
- Jewelry companies — will be able to import equipment, technologies, and materials without paying 12% VAT.
- Mining and processing enterprises — the expansion under item 27 provides benefits for hundreds of types of industrial imports.
- Large investment projects — savings on VAT when importing expensive equipment can reach tens of millions of soms per contract.
