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Cabinet of Ministers proposes to introduce state regulation of vodka prices

The state agency for control over production and turnover of ethyl alcohol and alcoholic beverages proposes amendments to the draft decree of the Cabinet of Ministers of Kyrgzystan on introduction of state regulation of vodka prices. The document has been submitted for public discussion.

According to the current version, the minimum wholesale and retail prices for vodka produced or sold in the Kyrgyz Republic are established. But the problem is still the shadow turnover of vodka products, which accounts for a significant part of consumption. The republican budget loses billions of soms annually.

According to the National Statistical Committee, the volume of vodka sales in 2022 amounted to 30,260 million liters. At the same time, according to the submitted declarations, the volume of production and import is 9,086 million liters. Consequently, there are 21,174 million liters in illegal circulation.

The agency specified that facts of cheap counterfeit vodka sale are revealed in the markets of the republic. The wholesale price of legally produced vodka of 0.5 liter capacity is 156 soms, and counterfeit vodka — 120 soms. According to the drafters, it is necessary to regulate the market of vodka products. This will increase the effectiveness of state control in terms of reducing illegal production and turnover of vodka through regulation of minimum wholesale and retail prices.

State regulation of vodka prices will reduce the number of illegal trade outlets and illegal turnover. With a 20 percent reduction in illegal vodka turnover it is projected to increase budget revenues in the amount of 592.9 million soms.