14:10, 12 марта 2026, Bishkek - 24.kg news agency , Anastasia BENGARD
The Association for the Development of the Agro-Industrial Complex proposes rejecting the Ministry of Health’s proposed increase in excise taxes on sugar-sweetened beverages.
The organization shares the need to improve public health and prevent non-communicable diseases. However, according to the organization, the proposed measure requires a comprehensive assessment, taking into account the economic, social, and industry-specific implications.
«Sugar and its processed products are considered food security products. This creates an obvious paradox: on the one hand, the state is allocating significant resources to support farmers and processors, while on the other, measures are being proposed that significantly increase the tax burden on processed agricultural raw materials. The proposed increase in excise taxes could actually reduce the economic attractiveness of processing agricultural raw materials,» the statement reads.
It is noted that the production of dried fruit drinks, nectars, and fruit drinks is directly related to the purchase of raw materials from domestic farmers. Increasing the excise tax burden could lead to the following consequences:
Therefore, the association fears that a tax measure aimed at regulating consumption could have direct negative consequences for the rural economy.
Furthermore, they believe that increasing the tax burden will inevitably lead to higher prices for domestic products.
«At the same time, the Kyrgyz Republic’s market is open, and products from neighboring countries—Afghanistan, Kazakhstan, Uzbekistan, Russia, and others—are already actively represented. In recent years, there has been an increase in the supply of sweetened water and beverages, which are actively promoted through HoReCa channels and retail chains. If excise taxes on domestic products are increased, consumers will choose cheaper imported beverages. Domestic producers will thus lose market share. As a result, the tax measure may not improve public health, but rather lead to a market redistribution in favor of imported products,» the appeal states.
It is also emphasized that producers’ desire to reduce the tax burden could lead to the substitution of sugar with artificial sweeteners. Thus, the proposed measure could lead to the replacement of natural sugar with chemical analogues, which is not always consistent with the goals of improving public health.
The Association for the Development of Agricultural Industry also noted that sharp increases in excise taxes have led to:
The appeal notes that the Kyrgyz Republic currently lacks sufficient laboratory infrastructure that could ensure prompt determination of sugar content and regular laboratory monitoring.
Producers and processors support the need to implement measures to improve public health. However, they propose a comprehensive approach, including:
Fiscal measures should be considered only as one element of policy, not the primary regulatory tool, the association concluded.
It should be noted that the country currently has a uniform excise tax on sugar-sweetened beverages of 3 soms per liter, regardless of the actual sugar content. The proposed initiative calls for a transition to a differentiated system, where the rate would depend on the sugar content.