The State Tax Service has proposed waiving tax for garment manufacturers and online sellers

The State Tax Service has proposed temporarily waiving the single tax for businesses in the garment industry and entrepreneurs selling goods via online marketplaces. The relief may remain in place until the end of 2026.

The initiative was announced at a working meeting chaired by Kubanychbek Ysabekov, Deputy Head of the State Tax Service, and attended by representatives of government bodies, garment manufacturers and sellers on international marketplaces.

Currently, the flat-rate tax for enterprises in the garment industry stands at 0.25 per cent of turnover, whilst for entrepreneurs trading via marketplaces it is 2 per cent. The State Tax Service believes that temporarily reducing the rates to zero will help to lower the tax burden, maintain the competitiveness of domestic businesses and support exports amid disruptions to the operations of international marketplace logistics centres.

According to the tax service, around 30,000 entrepreneurs currently operate via marketplaces, and this number continues to grow. The agency expects that these tax concessions will enhance Kyrgyzstan’s appeal for e-commerce and business registration.

It was also reported during the meeting that the Ministry of Economy and Commerce is assessing the number of entrepreneurs affected by disruptions to the logistics operations of international marketplaces. In addition to tax relief for garment manufacturers, interest-free preferential lending programmes remain in place, and further measures of state support are being considered.

The proposals drawn up following the meeting will be forwarded to the relevant state bodies for further consideration.