It is proposed to raise excise tax rates on alcoholic beverages. In particular, the tax on wine could increase fourfold, while the rate for champagne could double. Excise duties on spirits and liqueurs are set to rise gradually through 2029. The draft Cabinet of Ministers resolution was submitted for public discussion on November 4.
The document was prepared by the Ministry of Economy and Commerce. According to its explanatory note, the amendments aim to increase budget revenues and combat tax evasion schemes.
New excise tax rates
The current excise tax on regular wine is 25 soms per liter, while sparkling wines, including champagne, are taxed at 50 soms per liter. The rate for low-alcohol beverages is 100 soms per liter.
The authors propose introducing a uniform rate of 100 soms per liter for all these categories.
The following schedule is proposed for spirits and liqueurs:
- 2026 — 200 soms per liter;
- 2027 — 250 soms;
- 2028 — 300 soms;
- From 2029 — 350 soms.
As a result, the excise rate for spirits and liqueurs will increase by 75 percent by 2029 compared with the 2026 level.
However, a higher excise tax does not automatically mean that retail prices will rise by the same amount. The final price of alcoholic beverages also depends on other costs incurred by producers and retailers.
Budget expected to gain additional 170 million soms
The Ministry of Economy says the proposed changes are necessary because of differences between the current tax rates.
According to the ministry, some importers exploit differences in the classification of alcoholic products by declaring low-alcohol beverages as wine in order to pay less tax.
The explanatory note cites the case of one importer whose actions, according to inspection findings, may have resulted in an underassessment of excise tax amounting to 40,777,735 soms.
By changing the rates for regular and sparkling wines alone, the government expects to collect an additional 170.65 million soms annually.
Cafes and restaurants may receive exemptions
At the same time, the draft proposes reducing the administrative burden on catering businesses.
The authorities propose extending until January 1, 2033 the exemption from mandatory labeling requirements for sweetened, carbonated and other non-alcoholic beverages produced domestically and sold directly in cafes and restaurants, except for products in consumer packaging.
The explanatory note proposes extending similar exemptions to traditional national drinks, including maksym, jarma and bozo.
The authors say the measure is also linked to an appeal by Zhogorku Kenesh deputy Dastan Bekeshev, who supported the position of representatives of the restaurant and hotel industry.
According to the draft’s authors, catering businesses should not face the same administrative burden as large-scale industrial beverage manufacturers.
