Amendments to the Tax Code of Kyrgyzstan, aimed at developing production of perfumes and cosmetic products, were submitted to Parliament for consideration.
The deputies note that a lot of herbs and plants, which are used in perfumery and are of very good quality as they are growing in the mountains, clean area, grow in the country. But there are almost no enterprises producing perfumes, and the market is full of imported goods.
“Therewith, the activity of local manufacturers is doomed to failure because of the unequal position compared to importers. They are uncompetitive within EEU,” deputies believe. “Manufacturing of such products in Kyrgyzstan is equaled to manufacture of alcohol products with the payment of excise duty on alcohol. Cosmetics’ manufacturers in EEU countries do not pay the excise tax, and the activity itself is derived from the application of the laws regulating the production of alcoholic beverages. This greatly simplifies the requirements for the opening of such companies, obtaining permits, procurement of necessary materials, reduces the cost of production”.
The bill proposes to equal manufacturers of perfumes and cosmetic products to special users. This, according to deputies, will create equal to EEU countries producing conditions and serve as an impetus to the development of the production of these products in Kyrgyzstan.
“In addition, we will have an economic effect – the creation of new jobs and the payment of taxes on production,” MPs believe. (24.kg/Business World Magazine)
