Published
06/18/2026, 10:49A proposal has been put forward in Kyrgyzstan to significantly increase tax allowances for citizens. The relevant draft bill has been open for public consultation on the ZhK website since 17 June.
According to the explanatory memorandum, the personal tax allowance is set to rise from the current 650 KGS to 10,000 KGS per month, whilst the allowance for each dependant is to increase from 100 to 5,000 KGS. It is proposed that these changes be incorporated into the Tax Code.
According to the authors of the initiative, the measure is aimed at reducing the tax burden, supporting families and increasing the population’s disposable income. The authorities believe that citizens will spend the additional funds on goods and services, which will support domestic demand and the economy.
An example given is a family where only one person works, earning a salary of 50,000 KGS. Whilst such a person currently pays around 4,900 KGS in income tax per month, once the law is passed, this amount could fall to approximately 2,000 KGS. The saving would amount to around 3,000 KGS per month.
The authors explain the need for these changes by pointing out that the current deduction amounts have not been revised for over 25 years and have effectively lost their social significance against a backdrop of rising wages and prices.
Currently, the personal allowance stands at 6.5 times the reference figure (650 KGS), whilst the allowance for each dependant is one reference figure (100 KGS). The draft bill proposes increasing these to 100 and 50 times the reference figure respectively.
