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Kyrgyzstan Review, 10 years ago

[25.03.2OO3] Lower Excise Tax on Fuel and Lubricating Materials Will Result in 80 mln Soms, Lost in Budget Revenues

Association of Kyrgyz oil-traders and deputy head of the Revenue Committee of the Kyrgyz Tax Service (Finance Ministry of the KR) took part in the press conference on contraband trade of fuel and lubricating materials (FLM) in the Kyrgyz market, organized by the AKIpress Press center on March 25.
The volume of imported oil, exempt from excise tax has almost doubled in 2002 compared to the previous year. Free trade areas (FTA) contribute to increase volume of imports as fuel and lubricating materials imported into FTA are exempt from excise and other types of taxes reported participants of the press conference
The state budget has lost already 40 mln soms in potential revenues from excise tax on imported FLM.
Association of Kyrgyz oil -traders believes that lower excise tax rate set equal market conditions for legal importers of oil products and outlaw smugglers. Besides, lower excise rate will result in increased volume of legal import of FLM.
Customs service of the KR reports that lower excise tax rates will cause a loss of 80 mln soms in the 9 months of 2003. However, additional 277 mln soms will be received through legal import of fuel and lubricating materials.
NA AKIpress, March 25, 2003

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