Kyrgyzstan Proposes Extending Zero VAT on Key Agricultural Goods to Support Livestock Sector

The Kyrgyz Ministry of Economy and Commerce has proposed extending the zero VAT rate on the supply and import of several socially important agricultural goods through December 31, 2027.

The draft resolution has been published for public review, The Caspian Post informs via Kyrgyz media.

According to the ministry, the measure aims to secure adequate feed supplies for the livestock sector - including hay, straw, compound feed, bran, and grains - and to help lower market prices. Removing VAT on imports, officials say, is a necessary step to stabilize the feed market.

While the ministry acknowledges that eliminating VAT on feed products will temporarily reduce budget revenues, it expects the long-term benefits to outweigh the short-term losses. The proposal is projected to strengthen food security, encourage more frequent and larger-scale cattle imports, and support job creation in rural areas.

Officials also note that increased livestock imports could expand the use of pastures and farmland, upgrade the technical capacity of feedlots, and stimulate higher demand for compound feed. An effectiveness assessment of the proposed tax measures will be carried out as required.

The Ministry of Economy reports that prices for major types of animal feed rose in the first half of 2025 compared to the same period in 2024 - adding urgency to the proposed tax relief.