The import sector plays an important role in the Kyrgyzstan economy. It is one of the main sources of revenue for the government and helps to promote economic growth. To ensure that imports and exports are conducted lawfully, Kyrgyzstan has put in place import taxes. These taxes are charged on imported goods and services entering the country, and their rates vary depending on the type of product being imported. In this article, we will discuss the import duties imposed by Kyrgyzstan and the tax laws and exemptions. 

Import tariffs 

As per projections from the Ministry of Economy and Finance, the typical import duty percentage rose from 5.04% to 9.4% following Kyrgyzstan’s accession to the EAEU. Small Kyrgyz manufacturers have faced increased rivalry from industrial-scale competitors as participating countries have opened their marketplace to each other. The administration has been forced by public pressure to probably raise taxes within the EAEU. 

The Kyrgyz Republic initiated favorable levies for the shipment of automobiles produced after 2008 from non-EAEU nations in July 2018. This resulted in the import of over 28,000 cars for private use in 2019, primarily from Lithuania, Korea, Georgia, and the United States. The state has waived tariffs on rechargeable car imports and transactions to encourage their use.

Types of import taxes 

The main types of taxes in Kyrgyzstan are customs duty, value-added tax, excise tax, anti-dumping duty, and countervailing duty. 

Customs duty is a tariff imposed on goods and services. It is calculated based on the value of the goods and services being imported. Value-added tax is a tariff on the value added to goods and services at each stage of the production process. An excise tax is a tariff imposed on specific goods such as alcohol and tobacco. Anti-dumping duty is a tax imposed on imported goods that are sold at a lower price than their fair market value. Finally, countervailing duty is a tariff imposed on imported goods to offset subsidies given to foreign producers.

Kyrgyzstan is taking the necessary steps to protect its economy and citizens. These five main types of taxes are essential for the country to remain competitive and to ensure that the nation’s resources are used efficiently.

Tax rates

Kyrgyzstan is a country with a strong commitment to fiscal responsibility, evidenced by its tariff rates. 

The standard rate of taxation in Kyrgyzstan is 10%, with some exceptions. For example, cars are taxed at a rate of 15%, machines at a rate of 20%, chemicals at a rate of 25%, medicines at a rate of 30%, food at a rate of 35%, oil at a rate of 40%, and equipment at a rate of 45%. These rates are designed to ensure that the government can provide essential services and infrastructure to its citizens, while also ensuring that businesses remain competitive.

Altogether, the tax rates in Kyrgyzstan are designed to be fair and equitable. They are set at a level that allows the government to provide essential services and infrastructure to its citizens, while also ensuring that businesses remain competitive. 

Tax exemptions

The Kyrgyzstan government has implemented several import tariff exemptions to promote economic growth and development. Here are five of the main tax exemptions and their examples in Kyrgyzstan. 

Zero-rate break

The government has implemented a zero-rate tax on certain raw materials, such as oil, gas, and coal. This exemption allows businesses to purchase these materials at a lower cost and use them in their production processes. Additionally, the government has exempted certain machinery and equipment from import taxes. 

Exemption of research materials

The break on imported goods used for research and development allows businesses to purchase goods that are necessary for their research activities without having to pay import taxes. This helps businesses reduce their costs and encourages them to invest in research and development activities. 

Exemption on agricultural products 

This exemption allows businesses to purchase duty-free agricultural products to reduce their costs and encourages them to invest in agricultural production. 

Medical goods 

The nation has also implemented an exemption on imported goods used for medical purposes. This deduction helps companies to acquire medically necessary goods without incurring import taxes. This enables firms cut costs while also encouraging them to invest in healthcare research and growth.