The Ministry of Economy and Commerce of Kyrgyzstan has proposed extending the zero value-added tax (VAT) rate on taxable supplies and imports of certain socially significant agricultural goods until December 31, 2027. The draft resolution has been released for public discussion.
According to the ministry, the measure is needed to ensure sufficient feed supplies for livestock — including hay, straw, compound feed, bran, and grains — and to reduce their market prices. This requires abolishing VAT on the import of such animal feed, the ministry noted.
The initiators acknowledge that abolishing VAT on the supply and import of livestock feed will reduce tax revenues to the national budget. However, they expect the measure to bring long-term economic benefits by partially strengthening food security.
The VAT abolition is also expected to increase both the frequency and volume of cattle imports, which in turn will create new jobs, expand the use of pasture and farmland, improve the technical base of feedlots, and boost demand for compound feed.
As required by procedure, an effectiveness assessment of the proposed tax incentives will also be conducted.
According to the Ministry of Economy, an increase in prices of key types of animal feed was registered in the first half of 2025 compared to the same period in 2024.
