Tax Service Aims to Collect 1 Billion Soms in VAT on Medicines by 2024
Kyrgyzstan’s Tax Service Aims to Collect 1 Billion Soms from VAT on Medicines
By Ilya PETCHENKO
Bishkek – 15:42, 25 September 2024 – The Tax Service of Kyrgyzstan has set a target to collect around 1 billion soms from value-added tax (VAT) on medicines and medical products by the end of 2024. This information was shared by the Tax Service with 24.kg news agency.
In the following year, the state agency plans to further increase revenues from this tax to 4 billion soms. The State Tax Service has also mentioned that they will implement control measures in line with the standard tax legislation.
A new resolution was put into effect by the Cabinet of Ministers on August 27, which states that VAT on medicines and medical products in the country will be set at 12 percent of the taxable supply and import.
As a result of this resolution, Asel Turdalieva, a specialist from the Ministry of Health, has indicated that prices for medicines and medical products in Kyrgyzstan are anticipated to rise by 12 percent.
Almazbek Altybaev, the Executive Director of the Pharmaceutical Union of the Kyrgyz Republic, expressed concerns about the potential consequences of introducing a value-added tax on medicines and medical products. Altybaev warned that there may be an increase in smuggling by up to 60 percent and the cost of medicines could also go up.
Already, the prices of some medicines have seen a noticeable increase. For instance, hypertensive patients have reported that the price of Aira 16 has risen from 600-700 soms in the summer to no less than 1,100 soms currently.
These changes in VAT regulations are expected to have significant implications for the healthcare sector and the general population in Kyrgyzstan.
