16 billion soms brought out of the shadows: how tax breaks have transformed Kyrgyzstan’s jewellery market

Following the introduction of tax breaks, Kyrgyzstan’s jewellery industry has begun to emerge from the shadows, with around 16 billion soms returned to the legal economy.

Almambet Shykmamatov, Head of the State Tax Service of the Kyrgyz Republic, stated that tax concessions had helped to legalise the market.
Jewellers were provided with gold at a price below the global market rate, payment deferrals of up to six months were introduced, preferential loans at 6% were made available, and the tax rate was reduced to 0.25%.

As a result, he said, around 16 billion soms have been brought out of the shadow economy, and annual tax revenues have reached approximately 100 million soms.

Previously, a significant proportion of gold from Kyrgyzstan was exported as raw material, whilst finished jewellery was imported.

The reform of the industry began after the sector was transferred to the management of the tax service and the adoption of a law at the end of 2025 aimed at developing jewellery production and legalising it.