It is proposed to extend the zero rate of value added tax on sugar imports in Kyrgyzstan. The Ministry of Economy and Commerce submitted the corresponding draft resolution of the Cabinet of Ministers for public discussion.
The ministry proposes to zero VAT on the import of granulated sugar, raw cane sugar and refined sugar until the end of 2022. The latter, by the way, was not previously included in the list for exemption from VAT.
The Ministry of Economy notes that the decision of the Eurasian Economic Commission dated December 2, 2021 provides for the duty-free import of white sugar and raw cane sugar into the territory of the Eurasian Economic Union. At the same time, quotas were set for each EAEU country. The quota for Kyrgyzstan is 105,000 tons and is valid until August 31, 2022. Of these, 49,000 tons of raw sugar should be imported by two sugar factories Kaindy Kant and Koshoi, 25,000 tons — by the State Material Reserves Fund and 31,000 tons — by suppliers of granulated sugar.
At the same time, in order to stabilize the situation on the sugar market, the VAT rate on the import of this product was zeroed in Kyrgyzstan from March 20 to August 31, 2022.
It was planned that by the end of summer the entire volume of the allocated quota would be used. But in fact, for six months of 2022, about 59,200 tons of sugar, or 56.4 percent of the allocated quota, were imported into the country. The remaining 45,700 tons are on the way or at the loading. Because of this, the EEC extended the quota until the end of 2022.
«In order to stabilize prices for socially important goods and bring them into line with the validity period of the quota for duty-free import of white sugar and raw sugar, it is proposed to extend the zero VAT on its imports also until December 31, 2022,» the background statement to the draft resolution of the Cabinet of Ministers says.
