Kyrgyzstan Replaces Vehicle Tax with Fuel Levy

Kyrgyz President Sadyr Japarov has signed a tax reform decree that eliminates the country's vehicle tax, Orda.kz reports, citing the President's Facebook page.

Under amendments to the "Road Fund" law, the traditional vehicle tax will be replaced with a new system:

There will be no more tax on vehicles. From January 1, a fee of one som will be charged for each liter of gasoline or diesel fuel filled into a car,  the President of Kyrgyzstan emphasized.

The reform includes debt forgiveness for unpaid vehicle taxes through January 1, 2025.

We have also forgiven the debts of legal entities and private entrepreneurs accumulated before January 1, 2022. These periods will not be checked, the President reported on his social networks.

Japarov acknowledged the budget impact of these decisions but proceeded with the reforms. 

The decree also extends a moratorium on farmers' land taxes until 2030, with a promise to resolve agricultural water supply issues before the moratorium ends.

Original Author: Alexandra Mokhireva