Kyrgyzstan - The Times Of Central Asia

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Kyrgyzstan Announces Tax Amnesty

The Kyrgyz government has introduced a tax amnesty as part of its efforts to ease the financial burden on citizens and stimulate economic activity. President Sadyr Japarov directed the government to draft the necessary legislation and submit it to the country's Parliament, the Jogorku Kenesh, for approval. One key measure is the abolition of the annual tax on movable property, previously ranging from $10 to $20 depending on vehicle engine capacity. Instead, this tax will now be incorporated into the price of gasoline, resulting in a one som (KGS) increase in fuel costs. “The Cabinet of Ministers of the Kyrgyz Republic is instructed to submit within two months a proposal to exempt vehicle owners from tax obligations unfulfilled as of January 1, 2025, provided there is no judicial act of recovery,” states the presidential decree. Tax Relief for Farmers and Entrepreneurs Farmers will benefit from a suspension of the agricultural land tax until 2030. Additionally, Japarov has prohibited tax authorities from conducting inspections of businesses except for unscheduled checks in cases where an organization or entrepreneur ceases operations. Citizens with tax debts as of January 1, 2022, will also be exempted from repaying those amounts. While the move has been welcomed by many Kyrgyz entrepreneurs, who see it as a step toward fostering business growth, it has also sparked mixed reactions. Some citizens who have already paid their taxes expressed frustration on social media, questioning the fairness of the amnesty. Changes to Tax Administration In a related development, Japarov instructed the Cabinet of Ministers to revise the system of electronic delivery notes used for monitoring business turnover and tax compliance. The updated system will retain electronic invoicing for a limited list of goods, with all other products exempt from such requirements. The recent reforms build on efforts initiated under Almambet Shykmamatov, the new head of the State Tax Service, to streamline Kyrgyzstan’s tax system and reduce administrative burdens on businesses.

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Central Asia Tackles Plastic Pollution with Bag Ban Initiatives

Globally, an estimated 5 trillion plastic bags are used every year. These bags take approximately 1,000 years to decompose in landfills and do not fully break down. Instead, they photodegrade into microplastics, which absorb toxins and continue to pollute the environment. Recognizing the urgency of this issue, Central Asian countries are committing to phasing out plastic bags, each pursuing distinct approaches. Uzbekistan Uzbekistan plans to introduce a draft national program to reduce plastic pollution for 2025–2027. This initiative is part of the draft State Program for the Implementation of the Strategy "Uzbekistan-2030" in the Year of Environmental Protection and Green Economy, currently under public discussion. The proposal includes: A ban on the production, import, and use of plastic bags starting in 2027. Promoting environmentally friendly, biodegradable packaging. Regulating harmful chemicals in plastic products. Encouraging recycled plastic use in packaging through established coefficients. The draft program is expected to be developed by September 2025 and submitted to the Cabinet of Ministers by November 2025. A related draft presidential decree outlines additional measures, such as: Developing legislation requiring manufacturers and importers of plastic packaging to collect and dispose of plastic waste. Establishing collection and disposal facilities. Imposing a disposal fee for plastic waste by November 1, 2025. Kazakhstan Kazakhstan had initially planned to ban plastic bags by 2025. However, the Ministry of Ecology and Natural Resources determined that the country is not yet prepared for this transition. Research reveals a significant gap: while the consumption of plastic tableware and packaging exceeds 430 million pieces annually, the production of alternative materials is limited to only 10 million pieces. This disparity highlights the urgent need to develop sustainable packaging solutions before implementing a comprehensive ban. Kyrgyzstan Kyrgyzstan is set to ban the use of polyethylene bags and plastic nationwide starting January 1, 2027. The Law on Limiting the Circulation of Polymer Film and Plastic Bags in the Territory of the Kyrgyz Republic, signed by President Sadyr Japarov in 2023, outlines penalties for violations: For citizens: Fines of 10,000 KGS (approximately $114.90). For legal entities: Fines of 28,000 KGS (approximately $321.80). Warnings will be issued for first-time violations involving the free distribution of plastic bags. Subsequent violations will incur fines: For legal entities: 5,000 KGS (approximately $57.40). For individuals: 1,000 KGS (approximately $11.40). Tajikistan Tajikistan will implement a ban on the import and use of plastic bags starting January 1, 2025. To support this transition, authorities have focused on developing environmentally friendly packaging alternatives made from materials such as cardboard, paper, fabric, ceramics, and biodegradable polymers. These varied approaches reflect the commitment of Central Asian countries to tackling the global challenge of plastic pollution. By balancing environmental priorities with practical considerations, these nations aim to create a cleaner, more sustainable future.

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Low Revenues Cast Doubt on Kyrgyzstan’s Casino Legalization Efforts

After a decade-long prohibition, Kyrgyzstan legalized gambling - for foreigners - in 2022, anticipating a substantial boost to state revenues. Authorities projected billions of Kyrgyz Som (KGS) in revenue from casinos, betting shops, and slot machines. However, the actual contributions to the state budget have been far more modest, amounting to only a few hundred million KGS. According to official figures, Kyrgyzstan currently hosts three operating casinos. In their first year, these establishments paid KGS 97 million (approximately $1.1 million) in taxes and other budgetary contributions. By 2024, this figure is expected to rise to KGS 270 million ($3.1 million). While this reflects growth, it remains below the ambitious expectations set by the government. The underwhelming results have sparked criticism from legislators. Last year, members of parliament voiced dissatisfaction with the meager revenues. MP Sultanbay Aizhigitov expressed frustration, stating: "There is almost no benefit to the state from casino activity. It is a business controlled by five or six individuals, and it causes significant harm. The initiative has not justified itself. Do we need casinos at all? Perhaps it's better to shut them down." Recent data reveals that the majority of gambling revenue - KGS 258 million ($2.8 million) -came from casinos. Betting shops contributed KGS 11 million ($125,000), while slot machine operators added a mere KGS 1.8 million ($20,500). Notably, the 2022 legislation legalizing gambling in Kyrgyzstan stipulates that only foreign citizens may participate in such activities. Kyrgyz nationals caught gambling face fines, along with the casino hosting them. In an effort to boost revenues, the government has permitted casinos to operate in state-owned buildings and hotels with government stakes. Despite these measures, however, the financial benefits of gambling legalization remain a contentious issue, with critics questioning its overall value to the country.

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‘Made in Kyrgyzstan’ Program Aims to Boost Exports and Strengthen Global Presence

Kyrgyzstan’s Ministry of Economy and Commerce has launched the National Export Program "Made in Kyrgyzstan" for 2025-2028. Coordinated by the Kyrgyz Export Center, the initiative aims to help domestic producers access international markets, enhance the country’s export potential, and establish the “Made in Kyrgyzstan” brand as a recognizable symbol abroad. Program Goals and Priorities The program focuses on increasing Kyrgyzstan’s export volumes and foreign trade revenues by strengthening the position of Kyrgyz-made goods in global markets. It prioritizes key industries, including textiles, food, jewelry, and halal products, with the goal of making Kyrgyz exports more competitive internationally. To achieve these objectives, the program will: Support local entrepreneurs by promoting participation in international exhibitions and trade fairs. Facilitate access to financing and preferential loans for exporters. Streamline bureaucratic processes to expedite export procedures. Ensure domestic products meet international quality standards and certification requirements. Additionally, the program emphasizes increasing the export of high value-added goods and diversifying Kyrgyzstan’s export portfolio to reduce its negative foreign trade balance. Foreign Trade Trends According to the National Statistical Committee, Kyrgyzstan’s foreign trade turnover for January - October 2024 totaled $13.4 billion, marking a 6.4% increase compared to the same period in 2023. However, the trade balance remained negative, with exports accounting for 23.3% and imports for 76.7% of the total turnover. Key highlights include: Exports: Grew by 25.2% to $3.1 billion, largely driven by gold exports, which made up 34.1% of the total. Excluding gold, exports reached $2.1 billion, an increase of 21.9%. Imports: Rose by 1.8%, amounting to $10.3 billion. Trade with member states of the Eurasian Economic Union (EAEU) - Armenia, Belarus, Kazakhstan, and Russia - amounted to $4.2 billion, a 13.7% increase. Russia (71.8%) and Kazakhstan (26.4%) remained Kyrgyzstan’s largest trading partners within the EAEU. Meanwhile, trade with countries outside the EAEU reached $9.2 billion during the same period. Strengthening Export Potential The "Made in Kyrgyzstan" program aspires to boost exports of diversified, high-quality products while addressing the country’s trade deficit. By empowering local businesses, improving export infrastructure, and fostering global competitiveness, the initiative represents a significant step forward for Kyrgyzstan’s economic growth and international trade ambitions.

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Condé Nast Traveler Names Kyrgyzstan’s Karakol Among 25 Best Places to Visit in 2025

Condé Nast Traveler has crowned the Kyrgyz town of Karakol as the "adventure capital of Central Asia" and included it in its prestigious list of the 25 best places to visit in 2025. Located southeast of Lake Issyk-Kul, and approximately 150km from the Kyrgyzstan-China border, Karakol is Kyrgyzstan’s premier winter tourism hub. The city boasts the nation’s largest and best mountain ski resort. The magazine highlights Karakol as a prime destination for outdoor enthusiasts, offering activities such as hiking, horseback riding, kayaking, and paragliding. It also praises the Karakol ski base, the highest ski resort in Central Asia, perched at an altitude of 1.8 miles. Looking ahead, Karakol is set to further solidify its reputation as a winter sports haven. A new resort, Three Peaks, is scheduled to open in 2026 in collaboration with French ski specialists Société des Trois-Vallées. This development is expected to attract even more winter sports enthusiasts to the region. Beyond adventure, Condé Nast Traveler lauds Karakol’s cultural and culinary diversity. The city is home to a mix of Uyghur, Uzbek, Kyrgyz, Kalmak, Dungan, and Russian communities. This multicultural heritage has given rise to unique attractions, including wooden "gingerbread" houses, cold ashlan-fu soup, and the Dungan Mosque, built in 1907 by Chinese artisans. The mosque reflects Buddhist influences, with a pagoda replacing the traditional minaret. Condé Nast Traveler suggests visiting Karakol between June and September for trekking and cultural tours, while December through April is ideal for winter sports enthusiasts. The city has become more accessible with the reopening of its reconstructed international airport in December 2024. This development allows travelers to reach Karakol from Bishkek in under an hour by plane. Alternatively, the journey takes 6-7 hours by car or bus.

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Heads of Kyrgyz, Tajik, and Uzbek Governments Meet… Finally

It took more than 30 years, but the prime ministers of the three Central Asian countries that share the Ferghana Valley finally met to discuss a range of important issues that concern all three states. Tajik Prime Minister Kohir Rasulzoda, Uzbek Prime Minister Abdulla Aripov, and Chairman of Kyrgyzstan’s Cabinet of Ministers (Kyrgyzstan does not have a post of prime minister) Adylbek Kasymaliyev met on January 8 at a desolate area where the borders of the three countries meet. [caption id="attachment_27412" align="aligncenter" width="8256"] Image: gov.kg[/caption] The group touted agreements on the completion of the delimitation process along the Uzbek-Kyrgyz border and the early December 2024 agreement on the Kyrgyz-Tajik border. Since 1991, unmarked areas of the borders in the Ferghana Valley were often the scenes of conflicts between communities on either side of the frontier. Border guards sometimes fired on trespassers and dozens of people were killed or wounded, sometimes simply because they inadvertently strayed over unmarked territory into the neighboring country. The Ferghana Valley is the most densely populated region in Central Asia. This is due to the rich agricultural land which makes the region to this day the breadbasket of Central Asia. Soviet mapmakers drew lines to create Soviet republics in the region, though these borders mattered little since they were internal administrative boundaries inside one country. [caption id="attachment_27413" align="aligncenter" width="8256"] Image: gov.kg[/caption] After the USSR collapsed, these often-arbitrary, zigzagging borders took on meaning, and disputes quickly broke out about what land historically belonged to which nation and who had rights to water use. These issues were greatly complicated by the existence of enclaves created during the Soviet period such as Uzbekistan’s Soh and Shahimardon and Tajikistan’s Vorukh, all three of which are surrounded by Kyrgyzstan. Looking Ahead The three prime ministers discussed hydropower plants (HPP), an important topic for all three countries, especially as key HPPs are located in the mountains ringing the Ferghana Valley and more are currently under construction. Central Asia is one the regions most affected by climate change, so HPPs and water use in general are crucial issues, especially given that agriculture in the Ferghana Valley is vital to all three countries. All three countries face electricity shortages and hydropower is seen as a means of alleviating or even totally resolving this dilemma, but at the same time waters flowing from the mountains of Kyrgyzstan are important for agriculture in every Central Asian state. Uzbek media noted Uzbek Energy Minister Jurabek Mirzamahmudov was part of the delegation attending the January 8 talks. Reports did not mention if energy ministers from Kyrgyzstan and Tajikistan were also present. [caption id="attachment_27414" align="aligncenter" width="8256"] Image: gov.kg[/caption] Central Asia is also taking on a new importance as a trade corridor between Europe and China, and from Europe and China into Afghanistan and on further to Pakistan. Reports noted logistics were high on the agenda at the meeting of the three prime ministers. Trade between the three countries, specifically in the Ferghana Valley, was also discussed not only...