Beer production in Kyrgyzstan may reduce by 50 percent  

Beer production in Kyrgyzstan may reduce by 50 percent. Representatives of companies - manufacturers of beer stated at a meeting of the Committee on Budget and Finance of the Parliament during the discussion of amendments to the Tax Code.

 Recall, it is about the Kyrgyz government's initiative on marking of beer with excise stamps. The Cabinet justifies this by the fact that due to undocumented beer the state treasury has lost over 150 million soms in 2014. Approximately the same amount officials intend to return to the state budget, and bring the beer market out of the shadows.

 "Sooner or later we will have to introduce this innovation, because all other types of alcoholic beverages are marked with excise stamps in Kyrgyzstan and taxes are paid on them at once and beer has three weeks delay. It is necessary to fight against shadow economy," the Minister of Economy Arzybek Kozhoshev said today at a meeting of the committee.

However, representatives of the Brewers Association opposed the initiative and told the lawmakers that if the production line includes sticking of excise stamps, it will automatically slow down the production chain and the production volume will be reduced up to 50 percent. "Taking into account the fact that the beer is bottled at 7-14 degrees, the marking is not possible, all the more so, the beer is not marked in Russia and Kazakhstan," the manufacturers said.

However, MPs advised not to compare our production with other countries. "Do not look at someone. We should proceed from our own interests, and if it provides an additional income of 150 million soms to the budget, then the law must be supported," the deputy chairman of the Committee Ziyadin Zhamaldinov (Onuguu-Progress) said.

 At the same time Taalaibek Masabirov (Kyrgyzstan) asked the Minister of Economy to pay attention to the arguments of brewers. "We should not lose domestic business in the pursuit of additional taxes," Arzybek Kozhoshev warned. 

However, the head of the Economy Ministry noted that this innovation technologically is not as complex as it is represented by the manufacturing companies. "In Belarus, Armenia the beer has long been marked by excise stamps, and we must introduce new technologies, especially since the law does not take effect immediately. There will be adaptation period of 6 months, during which the plants need to bring their production into line with the new legislation," Arzybek Kozhoshev noted and added that domestic enterprises could afford installation of an automatic applicator, which costs $ 5,000, and it will  not slow down the production chain in any way.