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Kyrgyzstan plans to introduce fee for road maintenance from each liter of fuel

The Ministry of Transport and Communications of Kyrgyzstan proposes to introduce a fee for the repair and maintenance of roads in the republic. Amendments to the Code on Non-Tax Revenues were submitted for public discussion.

The total length of roads in Kyrgyzstan is 34,000 kilometers, of which 19,840 kilometers are public roads under the jurisdiction of the Ministry of Transport and Communications. They account for about 98 percent of passenger traffic and more than 96 percent of freight traffic.

At the same time, the road surface wears out every year, which requires constant investment of money in materials, equipment, fuels and lubricants, not to mention workers’ wages.

«As part of the reform, a Road Fund was created, the main goal of which is to increase the revenue side for subsequent financing of the road industry,» the ministry notes.

The sources of the fund are incomes enshrined in legislation: 50 percent of excise taxes on fuels and lubricants, fees and fines related to roads and transport (registration, passes, weighing, travel on artificial structures), allocations from the republican budget. Revenues from them are not sufficient to bring roads up to standards.

About 10 billion soms per year are required to maintain roads in a safe standard condition in Kyrgyzstan.

In fact, about 2 billion soms are allocated from the republican budget, which is approximately 100 soms per 1 kilometer of road, which is almost nothing for the proper maintenance of roads.

To change the situation, the Ministry of Transport proposes to introduce a fee for the repair and maintenance of public roads. This will involve charging a fee for every liter of fuel at gas stations. This is the practice of countries where the principle «who drives more, pays more» is implemented.

However, it is now unclear exactly how much you will have to pay. The procedure for collecting and the amount of fees for the repair and maintenance of roads will be approved separately by a resolution of the Cabinet of Ministers.

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