According to The Economist's report on January 12th, President Sadyr Japarov of Kyrgyzstan has signed a law amending the country's Free Economic Zones Act, which was previously passed by the Kyrgyzstan parliament. The new law aims to support entrepreneurs within the free economic zones, create conditions for fair competition, and address legal conflicts arising from changes in tax laws.
This new law clearly stipulates the types of activities allowed for entities within the free economic zone. With few exceptions, the production and sale of taxable goods are prohibited.
Exceptions permitted include: Free Economic Zone companies registered before the year 2000 can produce and sell tobacco products (HS code 2402), which are subject to consumption tax and value-added tax when entering other regions of Kyrgyzstan; products containing nicotine, including disposable e-cigarettes and similar devices (HS codes 2404 and 8543 40 000 0), but their sale must be restricted to outside of Kyrgyzstan; mineral water and carbonated drinks with added sugar, fruit flavors, or other sweeteners (HS code 2202), which also require payment of consumption tax and value-added tax when sold outside of the Free Economic Zone.
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