Kyrgyzstan Shakes Up Fiscal Framework With Major Tax Reform

(MENAFN- Trend News Agency) BISHKEK, Kyrgyzstan, September 26. The Kyrgyz Cabinet of Ministers has enacted a sweeping reform to consolidate the nation's revenue collection and economic oversight apparatus, Trend reports.

According to information, a new decree mandates a large-scale reorganization, effectively bringing the tax service and the control of the alcohol sector under the direct authority of the central government

The key change involves the merger of the State Tax Service, previously under the Ministry of Finance, and the State Agency for Control over the Production and Turnover of Alcohol, previously under the Cabinet of Ministers. These two bodies will be unified into a single entity: the State Tax Service under the Cabinet of Ministers. This new super-agency will assume all legal functions and responsibilities of the dissolved organizations, operating under newly approved management structures and regulations.

This means a significant centralization of fiscal power. The reform entails a comprehensive redistribution of policy-making and administrative functions among the Ministry of Finance, the Cabinet of Ministers, and other relevant agencies. Notably, the Ministry of Economy will now be tasked with formulating unified state policy for several sectors, including the production and trade of alcoholic beverages, bioethanol, and precious metals.

Furthermore, the decree provides clarification on the sources of budget revenue to be administered by the new body. This portfolio is extensive, ranging from waste disposal fees and licensing to customs duties, fines, and proceeds from confiscated goods.

The government has simultaneously revoked a number of its previous decisions to pave the way for this overhaul. The reform is scheduled to take effect on January 1, 2026, although certain provisions will become active just ten days after the decree's official publication.

MENAFN26092025000187011040ID1110114745