Kyrgyzstan is considering higher taxes on sugar-sweetened beverages, including a new sugar-content-based excise system, as officials seek to curb rising rates of obesity, diabetes, and cardiovascular disease among children and adolescents.
On May 26, the Kyrgyz Ministry of Health organized a high-level policy dialogue on the taxation of sugary drinks as part of the country’s strategy to prevent noncommunicable diseases and promote healthier diets.
According to the ministry, noncommunicable diseases, including cardiovascular illnesses, cancer, and diabetes, remain the leading cause of premature deaths in Kyrgyzstan. Excessive consumption of sugary beverages is increasingly recognized as a major risk factor for obesity and diabetes, especially among younger age groups.
The proposal would replace the current flat excise rate with a tiered system in which drinks with higher sugar content are taxed more heavily. The Ministry of Health has also proposed a separate excise tax on energy drinks, citing their sugar and caffeine content and potential risks for adolescents.
The policy discussion brought together representatives of the Ministry of Health, parliament, international development organizations, civil society groups, and public health experts to review international experience, economic evidence, and possible approaches to taxing sugary beverages.
According to the World Health Organization, more than 115 countries worldwide, including 22 countries in the WHO European Region, have already implemented various forms of taxation on sugar-sweetened beverages as part of efforts to improve public nutrition and reduce the health and economic burden caused by chronic diseases.
International studies show that increasing the price of sugary drinks can reduce consumption and encourage healthier dietary habits.
“Today, we are facing a significant increase in diabetes, obesity, and cardiovascular diseases, and the situation among children and adolescents is particularly alarming,” Deputy Health Minister Gulbara Ishenapysova said during the dialogue. “Sugar-sweetened beverages form unhealthy eating habits from an early age while providing no nutritional value. The state already incurs enormous costs for treating complications of diabetes, including hemodialysis, heart attacks, strokes, amputations, and disability.”
According to Ishenapysova, increasing taxes on sugary drinks should be viewed “first and foremost as an investment in public health and the prevention of chronic diseases.”
WHO Representative to Kyrgyzstan, Dr. Liviu Vedrasco, said the taxation of sugary beverages is not only a health policy measure but also an investment in the country’s future productivity and economic resilience.
“International experience convincingly demonstrates that well-designed fiscal policy helps reduce sugar consumption, encourages producers to manufacture healthier products, and helps prevent noncommunicable diseases, especially among children and adolescents,” Vedrasco said.
UNICEF Representative in Kyrgyzstan, Samman Thapa, warned that the situation in the country is becoming increasingly concerning.
“According to the 2023 Multiple Indicator Cluster Survey, 78% of children aged six to 23 months already consume sugary beverages,” Thapa said. “At the same time, the rate of overweight and obesity among children continues to rise.”
The World Bank backed the proposal, citing modeling that projected long-term health and fiscal benefits.
“Our analysis of the Kyrgyz Republic shows that there are practical measures capable of delivering significant benefits for both public health and public finances,” said Hugh Riddell, country director of the World Bank Group in Kyrgyzstan.
According to World Bank estimates, raising taxes on sugary beverages could help prevent more than 50,000 cases of obesity, 41,000 cases of type 2 diabetes, and thousands of cases of cardiovascular disease and stroke over the next 25 years.
The measure could also generate revenue comparable to current tobacco excise receipts, according to the World Bank.
“This is a smart measure that will help improve the nation’s health, strengthen public finances, and support the country’s long-term development,” Riddell said.
Participants in the dialogue reviewed the results of economic modeling and discussed draft regulatory proposals currently being developed in Kyrgyzstan.
The Times of Central Asia previously reported on the Ministry of Health’s proposed reforms to the country’s excise tax system targeting sugary drinks and salty foods.
At present, Kyrgyzstan applies a uniform excise tax of approximately $0.03 per liter on sugar-sweetened non-alcoholic beverages, regardless of sugar content.
The Ministry of Health now proposes a differentiated excise system based on sugar concentration. Drinks containing up to 5 grams of sugar per 100 ml would be taxed at about $0.06 per liter; those with 5-8 grams at about $0.08; those with 8-11 grams at about $0.10; and those with more than 11 grams at about $0.12.
Officials say the proposed system would encourage beverage producers to reduce sugar content, promote healthier consumer habits, and reduce consumption of high-sugar products.
The ministry has also proposed introducing a separate excise tax of approximately $0.20 per liter on energy drinks, citing their high sugar and caffeine content and potential health risks, especially for adolescents.
