Tariffs - The Times Of Central Asia

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import duties

Kyrgyzstan Urges EAEU to Remove Import Duties on Key Goods

Kyrgyzstan has appealed to its partners in the Eurasian Economic Union (EAEU) to eliminate import duties on a range of socially significant goods, arguing that the measure would help ease the impact of global inflation and slow domestic price growth, according to an official government statement. The proposal was presented during a meeting of the Eurasian Economic Commission (EEC) held in Moscow on March 13. Kyrgyz officials stressed that the country’s economic conditions differ markedly from those of the bloc’s larger member states, making more flexible trade mechanisms necessary. The initiative covers goods considered critical for food security, including flour, vegetable oil, fruits and vegetables, as well as cocoa powder used in the confectionery industry. Authorities in Bishkek believe that removing import duties on these items would lower procurement costs and reduce the transmission of global price increases to the domestic market. “We are seeing rising inflation worldwide, including for the goods we import, particularly agricultural products. In effect, when we import goods at higher prices, we are also importing inflation. Eliminating duties will help reduce the cost of these products,” said Elimbek Kanybek uulu, head of the EAEU Coordination Department, at a press conference in Bishkek. The full list of goods eligible for preferential treatment, along with import volume thresholds, is expected to be published within a month after the EEC formally approves the decision. According to Kanybek uulu, Kyrgyzstan has previously sought similar temporary measures for meat imports. At that time, the suspension of duties contributed to a reduction of around 10% in the price of imported meat. Food security remains a major policy priority. President Sadyr Japarov has said that Kyrgyzstan is currently self-sufficient in six of the nine staple food items included in the national food basket. The government plans to gradually expand domestic production of the remaining products, including flour, vegetable oil, and certain types of fruit. Analysts say future food price dynamics in Kyrgyzstan will depend on both global commodity trends and decisions within the EAEU regarding trade preferences and tariff policy.

Electricity

Kyrgyzstan Plans Gradual Electricity Tariff Increases to Address Energy Sector Deficit

Kyrgyzstan will raise household electricity tariffs starting May 1, as part of a broader reform program aimed at reducing subsidies and bringing tariffs closer to the actual cost of power generation. Under the new policy, the household tariff will increase by approximately $0.003 per kilowatt-hour, reaching $0.018 per kWh. According to the Ministry of Energy, tariffs are expected to continue rising each May until at least 2030, when they are projected to fully cover production costs. The government has outlined a tentative schedule for further increases: 2027: rise of about $0.004 per kWh 2028: rise of about $0.0045 per kWh 2029: rise of about $0.005 per kWh 2030: rise of about $0.0065 per kWh Even after the planned increase in 2026, households will cover only around 45% of the real cost of electricity, Timur Orozaliev, Director of the Department for Regulation of the Fuel and Energy Complex, told the Kabar state news agency. He said the cost of electricity production in 2026 is estimated at approximately $0.034 per kWh, meaning the new tariff will pay for less than half of actual generation costs. Electricity tariffs for industrial enterprises, financial institutions, restaurants, and government agencies are already two to three times higher than those for households. Despite the planned increases, electricity prices in Kyrgyzstan remain among the lowest in Central Asia. Electricity demand continues to grow. In 2025, national consumption reached 19.3 billion kWh, an increase of 900 million kWh compared with the previous year. Of this total, 15.4 billion kWh was generated domestically, while 3.9 billion kWh was imported from Turkmenistan, Uzbekistan, Kazakhstan, and Russia. Kyrgyzstan regularly experiences seasonal power shortages, particularly during winter, when many households rely on electricity for heating. To address the deficit, the government is working to build new hydropower plants and modernise existing facilities as part of a broader strategy to stabilise the national energy system and reduce dependence on electricity imports.

Rare Earth Elements

Kazakhstan’s Emerging Role in Global Rare-Earth Supply Chains

October 10 was one of the most consequential days for global trade policy and one of the most volatile for world markets since the U.S.–China tariff conflict first reignited. After China announced tighter export controls on rare earths, U.S. President Donald J. Trump first posted on Truth Social that “there seems to be no reason” anymore for him to meet with the Chinese leader Xi Jinping at the APEC summit in two weeks' time. Several hours later, the official White House account on X posted a message from Trump that he had learned that "effective November 1st, 2025, [China will] impose large-scale Export Controls [sic] on virtually every product they make, and some not even made by them." He then followed with the declaration that the U.S. will impose a 100% tariff on Chinese imports starting November 1, "or sooner," and launch export controls on critical software. As Washington and Beijing escalate their economic confrontation, the scramble for stable rare-earth supply chains has broadened beyond East Asia. Attention is shifting to Central Asia, where mineral potential and trade corridors align with the broader effort to reduce dependence on China. Kazakhstan has drawn particular attention, not as a single solution, but as a state seeking to leverage its Soviet-era industrial base and access to the Caspian to help meet emerging supply chain needs. Although Kazakhstan has made the most progress in translating its mineral reserves into a functioning mining industry, it remains part of a broader regional effort to diversify away from a single external partner, most notably China. Other Central Asian states are testing their own capabilities to meet global supply chain demands, though most remain constrained by infrastructure, financing, or lack of processing capability. Kazakhstan’s Position in the Emerging Supply Realignment On reserves, Kazakhstan’s rare-earth potential is rooted as much in continuity as it is in discovery. Decades of geological mapping under Soviet administration established its mineral profile, and recent joint surveys by Kazgeology and private firms have both confirmed and expanded those earlier findings. New delineated deposits in the east and center of the country, including the Zhana Kazakhstan site in Karagandy, have reinforced its status as a prospective non-Chinese source of critical materials, with verified concentrations of neodymium, praseodymium, dysprosium, terbium, and samarium. If current resource estimates are validated, the Zhana Kazakhstan deposit could rank among the largest rare-earth reserves in the world. These elements are essential inputs for high-efficiency magnets used in electric vehicles, wind turbines, and advanced defense systems. The U.S. Department of Defense classifies these rare earths as “critical defense materials,” a designation that underscores their strategic relevance rather than any immediate shift in supply. Both the Pentagon and the Defense Logistics Agency have begun increasing stockpiles and exploring alternative processing sources, but for now, the question in Kazakhstan is not geological endowment, which is established, but the terms under which that endowment can be brought to market. On processing capacity, Kazakhstan’s experience in large-scale mining of uranium, copper, and other critical minerals has...

Telecommunications

Kazakhstan’s Telecommunications Market Set to Slow in Coming Years

Kazakhstan’s telecommunications market is projected to experience a slowdown in the coming years, with average annual growth expected to hover around 6% for 2025-2027, nearly half the rate seen over the past two years. According to a joint study by Russian firm Nexign and the TelecomDaily agency, the sector grew by 11% in 2024, reaching $2.4 billion, the highest figure in three years. However, analysts attribute this recent surge not to organic market expansion, but to a sharp rise in communication tariffs, which increased by an average of 20%. The price hikes were largely driven by infrastructure modernization costs, the rollout of 5G networks, and increased mobile data usage. Looking ahead, sector growth is expected to be fueled by expanding the customer base, rising service consumption, and the development of digital offerings. Mobile communications accounted for 17% of telecom revenues in 2024, while internet access comprised a dominant 53%. In the past two years, mobile data consumption in Kazakhstan has doubled, placing the country among the global top ten for mobile internet usage per capita. As of March 2025, Kazakhstan had 26 million active SIM cards, more than the total population of approximately 20 million, indicating widespread use of multiple connections. Over 18 million people now have access to mobile internet, and another 3.2 million are connected to fixed broadband. The only segment in decline is fixed-line telephony, which saw a 10% drop in subscribers over the past year, falling to 2.3 million. The study notes that telecom operators will concentrate on expanding 5G coverage, enhancing service quality, and deploying fixed wireless access (FWA) technologies, seen as a more affordable alternative to fiber-optic infrastructure in rural areas. Kazakhstan is also advancing in satellite communications. In 2024, 750 rural schools were connected to the internet via Starlink, while OneWeb launched a ground control center in the country. The Times of Central Asia previously reported that Starlink’s commercial rollout in Kazakhstan is scheduled for the third quarter of 2025. The sector could also benefit from the integration of artificial intelligence in public services and various industries, offering potential new avenues for growth. Nonetheless, key challenges remain for the 2025-2027 period. These include the high costs of extending network coverage to remote areas, escalating prices for imported telecom equipment amid ongoing geopolitical tensions, and intensifying competition among major players. The primary operators in Kazakhstan’s telecom market include Kazakhtelecom JSC (and its subsidiary Kcell JSC), Beeline Kazakhstan (Kar-Tel LLP), Tele2/Altel (Mobile Telecom Service LLP), Transtelecom JSC, Alma TV (AlmaTel Kazakhstan JSC), and Jusan Mobile JSC (KazTransCom).

Import

Tajikistan Introduces 20% Duty on Imported Mobile Phones

Starting July 1, 2025, Tajikistan will impose a 20% customs duty on all imported mobile phones, including both feature phones and smartphones. This marks a significant policy shift, as such devices were previously exempt from import duties. Policy Details According to Government Decree No. 364, dated June 10, the duty applies to goods classified under HS codes 8517130000 and 8517140000, which encompass mobile phones, including smartphones. The new regulation stipulates a 20% tariff based on the customs value of the imported goods. “This means that upon import, phones will be subject to a 20% charge on their declared value,” a local trade expert explained. As a result, the retail price of a single device could rise by nearly one-fifth. Expected Price Increases Analysts predict retail prices for mobile phones will rise by 15% to 25%, depending on the brand and model. The price hike is expected to shift consumer preferences, with more people likely turning to budget or second-hand devices. The government has not publicly provided an official rationale for the duty. The decree was issued without accompanying commentary. However, economists suggest the measure is intended to bolster state revenues by broadening the import tax base. Experts advise consumers planning to purchase a new phone to do so before July 1, as many foreign-manufactured models, particularly those brought in through official channels, are expected to become significantly more expensive thereafter. Tightened Import Controls This move follows earlier steps by the Tajik government to tighten oversight of the mobile phone market. Since February 1, 2023, all mobile phones and tablets must be registered through their IMEI numbers. Devices connected to local mobile networks were automatically logged into the national database during a three-month grace period. From May 1, 2023, all imported phones must undergo formal customs clearance, with IMEI numbers automatically registered upon completion. Individuals bringing phones into the country for personal use or as gifts must complete a T-6 customs form. In such cases, IMEI registration is also automatic. While IMEI registration for individuals is free, all customs-related costs are borne by importers and are typically passed on to consumers through retail pricing. As a result, Tajik consumers should expect further price pressures starting in July, likely making new mobile phones less accessible to the broader population.