E-Malt.com News article: Kyrgyzstan: Government to fight with shadow alcohol market, increase excise taxes on imported beverages

Kyrgyz government intends to introduce proper order in the production and turnover of alcoholic beverages in the country, 24.kg news agency reported on January, 25.

According to Senior Deputy Prime-Minister of the Kyrgyz Republic Omurbek Babanov, today the budget revenue from one of the most profitable industries of all times is not more than KGS 500 million per year. The Government is going to increase this amount to KGS1 billion and reduce shadow turnover of alcohol products by 25 percent, he said.

The nation’s alcoholic beverages market is dominated by imported brands. In 2010, beer imports increased to 20 mln litres versus 18.9 mln litres produced locally. The population prefers foreign brands due to better prices and, in most cases, better quality than those of local beverages, it is reported.

Kyrgyzstan consumes 101.8 mln litres of alcohol every year, of which beer holds 47%, vodka – 40%, wine – 6% and low-alcohol drinks – 3%.

Beer accounts for 80.6% of the total volume of alcoholic beverages imported annually by the nation.

Besides fighting with shadow turnover of alcohol, the government plans to increase the excise tax for imported products to up to KGS15 per litre versus the current KGS5 per litre. Excise tax for domestic beer will be KGS7 per litre, it is reported.


26 January, 2011