The Ministry of Economy and Commerce of Kyrgyzstan proposes to exempt kompots, sharbats, as well as juices and nectars from excise tax. The draft of the relevant Cabinet resolution has been submitted for public discussion.
The ministry justified the initiative by support for domestic processors of agricultural products that produce soft drinks.
«Kompot and sharbat manufacturers are mainly medium-sized domestic enterprises; reduction of the tax burden will increase the economic benefit from using their own resources, which will facilitate the expansion of their production. This will allow enterprises to more actively invest in the raw material base, increase production volumes and reduce dependence on external supplies. As a result, the industry will receive an additional impetus for development, the competitiveness of domestic raw materials will increase, and a more stable supply of processing enterprises will be ensured,» the background document says.
The Ministry of Economy added that exemption of kompots, sharbats, nectars and juices from excise tax will allow them to be more competitive in foreign markets due to reduction of their cost price.
