Kyrgyzstan has developed a draft law on luxury tax introduction

Almaty. June 27. Silkroadnews – Kyrgyzstan has developed a draft law on luxury tax introduction, Ministry of Economy of the Kyrgyz Republic reports.

“For further improvement of the ongoing fiscal policy, implementation of Kyrgyzstan’s 2015-2020 fiscal policy concept (...) a set of measures has been planned, including introduction of elements of taxation for luxury goods through the revision of rates for certain types of property (movable and immovable),” the ministry’s statement said.

The department representatives explained, one the draft law directions is to solve the social inequality problems, providing for higher tax rates for financially wealthier Kyrgyz citizens.

With this it is also proposed to raise tax rates for certain types of property – houses and apartments, motor vehicles. According to proposals by the public, the owners of more commodious residences/apartments and luxury cars shall pay more.

In this connection, it is proposed to increase tax rates on houses and apartments depending on the taxable property object size.

Thus, it is proposed to increase rates for residential property which area exceeds 200 square meters up to 0.5%. versus current 0.35% rate, and for objects which area exceeds 300 square meters – up to 0.8% instead of 0.35% tax. As for transport tax, it is proposed to use the adjustment factor with reference to the volume of vehicle engine with account of vehicle manufacture year yet on current tax rate.

The draft law is published on the official government website for public discussion.