Business support: Taxes reduced and certain licenses canceled

14:00, 12 января 2026, Bishkek - 24.kg news agency , Turdubek AIGYROV

President of Kyrgyzstan Sadyr Japarov signed a law amending several legislative acts in the fields of taxation and social insurance, the State Tax Service reported.

According to the agency, the law is aimed at supporting entrepreneurs, both individuals and legal entities, and has been adopted as part of the implementation of the decree dated December 5, 2025 on measures to support the economy.

The adopted law introduces the following changes:

• Equipment and materials necessary for jewelry production are exempt from value-added tax (VAT);
• Tax on the sale of vehicles is canceled until 2029;
• Certain tax debts arising from re-export are written off;
• For workers in the garment and textile industries, the personal income tax rate is set at 1 percent, and social contributions are reduced;
• For individuals renting out property, the social contribution rate is set at 6 percent;
• Tax rates on activities conducted abroad and on banking transactions are reduced to 0.1 percent;
• Licensing of retail sales of alcoholic products is canceled.

In addition, the law strengthens liability for certain violations. In particular, fines for illegal movement of goods across the Eurasian Economic Union border have been increased, and repeated violations may result in confiscation.

The State Tax Service emphasized that the measures are aimed at reducing the fiscal burden, stimulating business activity, and legalizing the economy.