Alcohol - The Times Of Central Asia

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Tax Reform

Kyrgyzstan Increases Excise Taxes on Alcohol and Sweetened Beverages

The Kyrgyz Cabinet of Ministers has approved a rise in excise tax rates on alcoholic beverages and sugar-containing drinks, including children's juices, as part of a broader phased tax reform strategy According to the State Tax Service (STS), the adjustments are part of a long-term initiative that will continue incrementally through the end of the decade. The excise tax on vodka and spirits has increased from approximately $1.8 to $2.2 per liter, with an additional annual increase of about $0.2 expected in the coming years. Rates for other alcoholic beverages have also been revised: Wine: increased by approximately $0.05 per liter (now around $0.2) Cognac: increased by about $0.4 per liter (now about $1.6) Beer: increased by roughly $0.03 per liter (now approximately $0.2) The tax agency highlighted that the changes are being implemented gradually to mitigate potential inflationary effects on retail prices. Officials stated that the reform has a social dimension, aiming to curb consumption of products deemed harmful to public health. In the first 11 months of last year, Kyrgyzstan collected approximately $228.5 million in excise tax revenues. Of that total, around $55 million came from domestically produced goods, including $38.8 million from alcohol sales. New Tax Introduced on Sugar-Containing Beverages The reform also introduces an excise tax on sugar-containing beverages for the first time, including products previously classified as baby food. Previously, such items were exempt, leading to regulatory loopholes. The STS explained that some manufacturers registered sweetened beverages as baby food to avoid excise duties, creating unfair competition in the market. To close this gap, all sugar-containing beverages, including children’s juices, will now be taxed at a minimum rate of about $0.03 per liter. Given the typically small packaging sizes, authorities estimate the retail price increase per unit will be modest, approximately $0.01. The reform reflects a growing regional trend of leveraging fiscal policy to discourage unhealthy consumption habits while generating revenue for public spending.

Excise Tax Revenues

Alcohol and Tobacco Lead Kyrgyzstan’s Excise Tax Revenues

Alcohol and tobacco products continue to be the primary sources of excise tax revenue for Kyrgyzstan’s state budget, according to the Ministry of Finance’s final report on budget revenues for the first 11 months of 2025. The report highlights excise taxes as one of the most stable and predictable sources of state income. From January through November 2025, total excise tax revenues exceeded $222 million. Alcohol producers remain the top contributors. During the reporting period, they transferred $38 million to the budget. Vodka producers accounted for the largest share at $25.5 million, while breweries contributed approximately $9.4 million. Producers of brandy, wine, and other alcoholic beverages paid significantly less. As a result, the alcohol sector continues to lead all industries in excise tax contributions. Despite reduced domestic production, tobacco companies dominate excise revenues from imports. In the same period, excise taxes on tobacco products imported from Eurasian Economic Union (EAEU) countries brought in $101 million, with an additional $4.4 million from imports originating outside the EAEU. Revenue is no longer limited to traditional cigarettes. The report notes contributions from heated tobacco products and electronic cigarettes. While their current share remains modest, steady annual growth in excise payments for these categories points to shifting consumer habits. Kyrgyz authorities consider excise taxes on alcohol and tobacco not only a fiscal mechanism, but also a tool of social policy. Gradual increases in tax rates are intended to simultaneously boost revenue and, according to government projections, reduce consumption of harmful products. The state's role in the alcohol sector warrants particular attention. In early 2023, the country’s largest alcohol producer, Ayu, along with its distilleries and vodka factories, was voluntarily transferred to state ownership. Since then, smaller industry players have voiced concern that the government may incrementally tighten its grip on the sector and effectively establish a monopoly. Overall, the data confirm that so-called “harmful” goods, alcohol and tobacco, remain the most lucrative sources of excise tax revenue for the Kyrgyz budget.

Alcohol

Experts Warn of Risks as Kazakhstan Considers Alcohol Sales Restrictions

On October 13, Kazakhstan’s Ministry of Internal Affairs shocked citizens by proposing a ban on the sale of alcohol in regular grocery stores, retail chains, and online platforms. The announcement overshadowed global headlines and quickly sparked widespread debate. While the number of alcohol-free settlements in Kazakhstan is rising, overall consumption remains high, prompting concerns among experts about the potential consequences of such a sweeping ban. A Push for Specialized Alcohol Stores The ministry justified the proposed restrictions as a public safety measure. According to Minister of Internal Affairs Yerzhan Sadenov, alcohol is a major contributor to crime, with up to 10,000 crimes committed annually under the influence. Violations of age and time restrictions on alcohol sales are reportedly common. “They sell around the clock under the guise of cafes and bars. Online delivery is widely used. The measure of revoking a license is ineffective, it can be obtained the next day by other persons,” said Sadenov. The ministry is advocating for alcohol to be sold only in specialized stores, so-called alcohol markets. It also proposes tightening the licensing process and limiting the number of licenses issued. Additionally, it recommends restricting alcohol sales in entertainment venues, where more than 1,400 alcohol-related crimes, including three murders, have occurred. A New Front in the Fight Against Alcohol Abuse Many Kazakhstani citizens observe that alcohol consumption has declined since Soviet times, a trend attributed to increasing religiosity in the predominantly Muslim country and the popularity of healthy lifestyles. Still, the issue remains pressing. Over the years, Kazakhstan has introduced stricter regulations. In 2014, restrictions were imposed on sales hours. High-alcohol-content beverages were banned in stores from 9 p.m. to 12 p.m., and low-alcohol beverages from 11 p.m. to 8 a.m. In 2020, the minimum legal age for purchasing alcohol and tobacco was raised from 18 to 21. As of 2025, 429 villages have officially renounced alcohol. In the Aktobe region, 33 villages adopted alcohol-free policies, while 18 in the Kyzylorda region and 53 in the Atyrau region followed suit. According to officials, no offenses have been recorded in some of these areas over the past two years. Kazakhstan Still Drinks Despite these measures, alcohol consumption remains substantial. According to the World Health Organization (WHO), the average per capita alcohol consumption in Kazakhstan among those aged 15 and older stood at 5.4 liters of pure ethanol in 2022. The global average that year was 6.2 liters, with consumption in Europe ranging from 9 to 11 liters. In predominantly Muslim countries, the average is below 3 liters. WHO considers levels above 5 liters a significant health risk. A June 2025 survey found the highest consumption in northern regions, Pavlodar, Kostanay, and North Kazakhstan, as well as in Astana and Almaty. In contrast, Shymkent, Atyrau, and Turkestan reported the lowest levels. Interestingly, young adults aged 18 to 24 were found to drink less frequently, a trend attributed to stronger family oversight and cultural values. Economic and Social Risks of a Ban Experts urge caution in pursuing aggressive...

Alcohol

Uzbekistan: 17 Nationals Among Dead from Alcohol Poisoning in Türkiye

Seventeen Uzbek citizens have died after drinking illegally made alcohol in Türkiye and another five are being treated in intensive care, Uzbekistan’s consulate in Istanbul said Saturday. Nearly 40 people have died of alcohol poisoning in Türkiye’s biggest city in recent days. The consulate said on Telegram that the death toll rose on Friday after three more Uzbek nationals died. It said it was preparing documents so that the bodies can be sent back to Uzbekistan, and that consulate staff are visiting the sick Uzbeks in hospitals and staying in touch with their relatives and Turkish authorities. “It was also discovered that some compatriots, despite being poisoned, attempted to treat themselves at home and did not seek hospital care. When approached, they explained that hospitalization might be financially burdensome. However, such decisions have subsequently led to kidney failure, deteriorating vision, and respiratory issues,” the consulate said. Some 38 out of the 92 people who went to hospitals died, according to Anadolu, Türkiye’s state-run news agency. At least two dozen people had to be intubated, and eight others were later discharged, the agency said Saturday. The Istanbul governor’s office said on Thursday that it had been stepping up efforts to combat the sale of illegal alcohol, which can have high levels of dangerous substances such as methanol. It said it had detained about a dozen people, including four on homicide charges; seized 29 tons of counterfeit alcohol since the beginning of the year; and closed 64 businesses that were selling it.

Alcohol

Excise tax increase provokes a rise in alcohol prices

Alcohol prices in Turkmenistan have changed twice this month: at the beginning of the year they doubled, and by the end of the month they almost returned to the previous level. The order to reduce prices, as reported in the Chronicles of Turkmenistan, came from the Ministry of Trade and Foreign Economic Relations. Thus, Turkmen wines went up in price from $2-2.86 per bottle to $2.86 - $4.29. Cognac went up from $8.59-14.31 to $10-17.17, vodka - from $8.59-10 to $17.17, expensive brands of vodka in liter bottles - from $28.62 to $42.94, beer - from $4.29-5.72 to $8.59-11.45. At the same time, the quality of alcoholic beverages produced in the country leaves much to be desired - consumers note that most of the wines are produced not from grapes, but from Chinese powder. The increase in alcohol prices was due to another increase in excise taxes from January 1, 2024. Excise tax on beer increased from 30% to 34.5%, on wines and spirits, depending on the degree - from 39%, 61% and 77% to 44.85%, 70.15% and 88.55% respectively, the publication notes. New excise tax rates are also introduced in neighboring Uzbekistan. Thus, the excise tax on domestically produced ethyl alcohol will double to $1.21 per liter. At the beginning of 2023, it increased fivefold. Excise on some types of alcoholic beverages will increase by 5% later - from July 1. However, tariffs for imported alcohol are again reduced by about 5%. Now the minimum wholesale and retail prices for alcoholic beverages in Uzbekistan vary within the following limits: wines - $1.17 -1.33 per 1 liter of finished product, cognac, $4.65 - 5.35, vodka and other alcoholic products (except beer) $3.48. For comparison, in Kazakhstan from October 1, 2023, the minimum retail price of vodka, strong liquor and vodka products was $4.69 per liter, cognac and brandy $6.95 per liter. This Central Asian country, according to WHO, has the highest alcohol consumption compared to its neighbors. Kyrgyzstan ranks second, Turkmenistan third, followed by Tajikistan and Uzbekistan. Nevertheless, all countries in the region, except Tajikistan, have seen a decline in per capita alcohol consumption. For example, in Kazakhstan in 2010 it was 9.3 liters, and in 2016 this figure decreased to 7.7 liters. In Kyrgyzstan, during this time, total alcohol consumption decreased from 10.2 liters to 6.2 liters per capita. Similarly, in Uzbekistan, alcohol consumption fell from 3.2 liters to 2.7 liters. The same situation in Turkmenistan - alcohol consumption fell from 6 liters to 5.4 liters per capita. Only in Tajikistan is the opposite situation observed. People there began to consume more alcohol - 3.3 liters against 2.4 liters. Recall that all Central Asian countries have a ban on advertising of alcoholic beverages, and a number of measures are taken to reduce the consumption of alcohol by the population. For example, in Kazakhstan, Uzbekistan, Tajikistan and Turkmenistan the minimum legal age to buy alcohol is 21; only in Kyrgyzstan can it be bought from the age of 18.

Kazakhstan Tax Alcohol Tobacco

Kazakhstan to raise excise taxes on alcohol and tobacco in 2017

ASTANA (TCA) — In 2017, the government of Kazakhstan plans a phased increase in excise duties on alcoholic beverages and tobacco, the Minister of National Economy Kuandyk Bishimbayev said at the conference "Actual problems of taxation" on September 22, the official website of the Prime Minister of Kazakhstan reports. Continue reading