According to the State Tax Service of the Kyrgyz Republic, local jewelers are now exempt from VAT on imported metal-containing ores, concentrates, alloys, and refined metals used in jewelry production.
Relevant amendments have been made to Kyrgyzstan’s tax legislation.
The chairman of the State Tax Service, Almambet Shykmamatov, stated that removing VAT on raw material imports will stimulate the growth of the jewelry industry.
— Any form of business stimulation leads to development, increased profits, and a reduction in the shadow economy. As a result, tax revenues to the state budget increase. Exempting raw materials from VAT automatically reduces procurement costs and allows entrepreneurs to allocate funds to other needs, — he explained.
The tax service noted that the VAT exemption for jewelers is expected to lower the production costs of local jewelry, reduce the size of the shadow economy, and improve the financial standing of domestic manufacturers. Additionally, it will encourage production expansion, improve product quality, and promote the adoption of new technologies.
