Kyrgyzstan has abolished the VAT exemption for certain components used in the construction of small hydroelectric power stations

The Cabinet of Ministers has removed the item ‘other pipes, tubes and hoses, rigid, made of other plastics’ from the list of goods for the construction of renewable energy installations. Previously, imports of these items were exempt from VAT under this list.

This item falls under the category of equipment for small hydroelectric power stations. Once the amendments come into force, imports of such goods will no longer be eligible for VAT exemption under this list.

According to foreign trade data, 13,473.1 tonnes of such products, worth $23.3 million, were imported into the country between January and June 2026. During the corresponding period in 2025, imports totalled 7,687 tonnes, worth $19.5 million. However, it should be noted that these include all kinds of hoses and pipes falling under the first four digits of the HS code — 3917

Consequently, the physical volume of imports in this category increased by a factor of 1.8, whilst the value rose by 19.1 per cent.

The largest suppliers in January–June 2026 were Russia — $10.1 million, Turkey — $4.9 million, Kazakhstan — $2.1 million, China — $1.4 million and Uzbekistan — $1.1 million.

The amendment was approved by Cabinet of Ministers Resolution No. 603 of 8 September 2026 and will come into force seven days after its official publication.