Kyrgyzstan Plans to Raise Excise Tax on Wine and Vodka, Potentially Affecting Prices

As part of preparations for public discussion, a draft resolution of the Cabinet of Ministers provides for raising excise rates on alcohol. According to the information, the changes are aimed at increasing budget revenues and combating tax evasion schemes.

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1. Plans to raise excise tax on wine and vodka: what will change for buyers
2. Kyrgyzstan is discussing higher excise rates on alcohol. The changes will affect wine, champagne and liquor and vodka products.
3. Current excise rates vary widely. The drafters propose unifying the rate for several categories of alcohol.
4. Liquor and vodka products are scheduled for a phased excise increase through 2029. This is a significant change for the industry.
5. 2026 — The excise rate on liquor and vodka products will begin to rise.; 2029 — The excise rate will reach 350 som per liter.
6. Important to remember: a higher excise does not guarantee an automatic increase in the retail price. It depends on the costs of producers and sellers.
7. Kyrgyzstan is discussing a significant increase in excise rates on alcohol products, which could change retail prices for consumers. The changes affect wine, champagne and liquor and vodka products, and the draft resolution has been put out for public discussion.

New excise rates on alcohol

The current rates are as follows: 25 som per liter for regular wine, 50 som for sparkling wines, including champagne, and 100 som for low-alcohol beverages. The drafters propose unifying the rate for these categories at 100 som per liter.

Schedule for raising the excise on liquor and vodka products

Liquor and vodka products face a phased schedule of rate increases through 2029. According to the Ministry of Economy and Commerce, the rate will rise starting in 2026 and reach 350 som by 2029.

It is important to note that a higher excise does not guarantee an automatic increase in the retail price by the same amount, since the final cost of alcohol also depends on the costs of producers and sellers.

Financial expectations and rationale for the changes

The Ministry of Economy explains the need for the adjustments by the gap between current rates, noting that some importers may exploit differences in the classification of alcohol products.

Overall, the tax changes affect alcohol products and are aimed at increasing budget revenues.