Kyrgyzstan exempts grain imports from VAT for state reserves, flour producers
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Kyrgyzstan’s Cabinet of Ministers on July 23 adopted a resolution exempting grain imports from value-added tax for the State Material Reserves Fund and domestic flour producers. The measure, published on July 24, is designed to bolster food security and stabilize market prices.
The Exemption
Resolution No. 504, dated July 23, 2026, amends Cabinet Resolution No. 249 of April 30, 2022, to apply a zero VAT rate to imports of wheat and meslin (EAEU HS code 1001). The exemption covers grain imported by the State Material Reserves Fund under the Ministry of Emergency Situations, as well as imports by flour producers for their own manufacturing or for supply to the fund or other producers. Zero VAT also applies to domestic supplies of grain made to the fund or flour producers.
Scope and Conditions
The zero rate is permitted when grain is imported directly by the State Material Reserves Fund for its purposes or for delivery to a flour producer for own production. Flour producers may also import grain under the zero rate if it is used in their own production or supplied to the fund or another flour producer. The resolution specifies that zero VAT is allowed on taxable supplies of grain to the fund or a flour producer, covering both import and domestic transactions.
Regulatory Changes
The resolution also makes editorial corrections to the state-language text and revokes point 3 of the 2022 Resolution No. 249. It repeals in full the September 1, 2022 Resolution No. 479 and removes individual provisions from resolutions dated December 28, 2023 (No. 718), December 2, 2024 (No. 718), and December 27, 2024 (No. 808). The new VAT rules take effect 10 days after official publication, which occurred in the “Erkin Too” newspaper on July 24.
What's Next
The zero VAT policy is set to come into force in early August 2026, after the required 10-day period. It remains unclear whether the measure will significantly boost grain imports or lower flour prices, as global grain markets and domestic demand continue to fluctuate.
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Kyrgyzstan exempts grain imports from VAT for state reserves, flour producers
