Search

Table 1.5 FDI by economic activity, 2012-19
Water supply; sewerage, waste management and remediation activities
(USD '000)
2012:30; 2013: 159; 2014:32; 2015: -; 2016: -; 2017: -; 2018: 4; 2019: 10

2.15. Another set of policy initiatives aimed at strengthening the rule of law and improving the quality of public administration was launched in 2019 when the Government adopted the National Action Plan 2018-20 to build an open government. It contains 22 commitments in 9 areas: (...) (vi) natural resources and development; (...).

2.18. Law No. 41 of 2 July 1997 on State Regulation of Foreign Trade Activity provides the overall framework for the regulation of foreign trade activity in the Kyrgyz Republic. (...) The Law defines certain basic principles of trade policy and identifies, in general terms, powers and responsibilities of the Government with respect to particular aspects of foreign trade, including (...) environmental standards and requirements, (...).

2.22. An important objective of the National Sustainable Development Strategy for the Period 2013 17 was to improve the country's export performance through an export development strategy aimed at enhancing the competitiveness of domestic products on external markets and promote exports of services. (...)

2.36. (...) The Kyrgyz Republic also participates in the United Nations Special Programme for the Economies of Central Asia (SPECA), launched in 1998, which aims to facilitate economic cooperation in the SPECA region and integration of the SPECA participating countries into the world economy, and to provide a platform for cross-border cooperation for the achievement of the Sustainable Development Goals.

2.40. An UNCTAD report on the investment regime of the Kyrgyz Republic (...) makes specific proposals for changes in company operations and access to land and real property, taxation, labour legislation, employment of non-residents, environment, trade facilitation, access to justice, and governance. The UNCTAD report also identifies strategic priorities to diversify FDI attraction and promote sustainable development: (...) (iii) enact policies for sustainable mining and linkage development. [62]

[62] UNCTAD, Investment Policy Review: Kyrgyzstan, 2016, pp. 28-49. Viewed at: https://unctad.org/en/PublicationsLibrary/diaepcb2015d3_en.pdf.

3.43. The EAEU non-preferential rules of origin apply to third-country imports into the customs territory of the EAEU for all non-preferential policy instruments, including application of non tariff measures, trade remedies, origin marking requirements, trade statistics, and government (municipal) procurement. EEC Council Decision No. 49 of 13 July 2018 on Rules of Origin of Goods Imported into the Customs Territory of the Eurasian Economic Union (...). It establishes two main methods: wholly obtained or produced, according to a list of products [40] ; (...)

[40] The products include: (...) ; (ix) waste and scrap (secondary raw materials) resulting from production or consumption conducted in that country provided that such goods fit only for utilization and/or recovery of raw materials; (x) used goods collected in that country provided that such goods can no longer fulfil their original function and fit only for utilization and/or recovery of raw materials;

3.78. The Kyrgyz Republic continues to apply certain indirect taxes, i.e. VAT, excise tax, and sales tax, on imported goods. Another tax was put in place in 2013 that charged an environmental pollution fee on foreign freight carriers when they crossed the border. [85] The level of the tax varied by the type of vehicle, e.g. from 500 KGS for motorcycles to 2,500 KGS for buses, trucks, and tractors. Also, 16 specific automobile checkpoints were designated for the payment and collection of the tax. This provision was abolished in 2019.

[85] Ministry of Justice, Government Resolution No. 675 of 17 December 2013 on Approval of the Temporary Regulation on the Procedure for Collecting Fees for Environmental Pollution when Vehicles of Foreign States Enter the Territory of the Kyrgyz Republic.

3.84. Further, in accordance with Law No. 122 of 12 August 2020 on Amending Certain Legislative Acts on Clean Air and Improvement of Tax Administration, the supply of vehicles powered only by an electric motor produced at enterprises in the Kyrgyz Republic is exempt from VAT as at September 2020. (...)

Table 3.16 VAT exemptions on imported goods, works, and services
Tax code reference: 257
Good, work, or service: Materials used to assist after the consequences of natural disasters, armed conflicts