During a meeting with residents of Aitmatov and Manas districts of Talas region, head of state Sadyr Japarov instructed the government to consider abolishing VAT on the export of potatoes and other types of agricultural products.

The situation with taxation of agricultural exports

The request to review the procedure for collecting VAT was voiced by a resident, Melis, who represents the interests of farmers growing potatoes and beans. According to the farmer, in 2022, after negotiations with the Uzbek side, Kyrgyz producers were able to supply potatoes through seven checkpoints without VAT. However, this year the tax was reintroduced, which, in the farmer's view, created an additional burden on producers.

Representatives of the Ministry of Agriculture explained that the earlier VAT exemption was a one-time measure, while the Ministry of Economy noted that the decision was made only for a certain period of time.

The head of state's position

Remove VAT from potatoes. Abolish it for farmers, for vegetables and fruits
Sadyr Japarov

President Sadyr Japarov inquired about the level of budget revenues from VAT on potato exports and, noting that if there is produce for export, the possibility of abolishing the tax must be considered. As a result, the head of state instructed that the issue be worked out with the government and a decision be made to abolish VAT on the Kyrgyz side.

7checkpoints
2022year (no VAT)

Context

Such issues were discussed during a meeting with residents of Aitmatov and Manas districts of Talas region.