BISHKEK, Kyrgyzstan, January 9. Kyrgyzstan's new road tax, set at 1 som ($0.011) per liter of fuel, is expected to generate up to 1.8 billion soms ($20.6 million) annually, surpassing the vehicle tax revenue of 1.2 billion soms ($13.7 million), Kubanychbek Ysabekov, Deputy Head of the Tax Service said on the local radio, Trend reports.
He elucidated that the novel fee structure would be commensurate with the volume of fuel utilized, signifying that individuals with higher vehicular mileage will incur elevated costs. Ysabekov articulated that the execution of the novel taxation framework would not precipitate a decrement in fiscal inflow for the state treasury.
Ysabekov affirmed that this would not precipitate supplementary challenges for end-users, who will persist in acquiring and utilizing fuel in a conventional manner. The levy will be assessed at the point of entry or during the manufacturing process, mandating that importing entities and producers remit 1 som for each liter of fuel processed.
To note, President Sadyr Zhaparov signed a decree on 8 January 2025 to abolish the vehicle tax entirely. This decision follows changes to the Road Fund Law, which now mandates a fuel levy of 1 som per liter, replacing the vehicle tax.