Kyrgyzstan proposes 28% increase in minimum retail price for a half-liter of domestically produced vodka to 90 som, 35% increase in minimum wholesale price for half-liter of vodka to 81 som

, February 12, 2014 () – The Finance Ministry of Kyrgyzstan has proposed to increase the minimum retail price for 0.5 liter of domestically produced vodka from 70 to 90 som (+28%), minimum wholesale vodka price for 0.5 liter from 60 to 81 som (+35%). The respective changes have been brought up for public discussion. According to the article 13 of the law on regulation of production of ethyl alcohol and alcohol products, the minimum wholesale and retail prices for vodka produced in Kyrgyzstan are set by the Kyrgyz government. The current excise tax for vodka is 40 som for one liter. The government mulls raise of excise tax to 60 som for a liter. Analysis of the measures taken by OECD countries since the global financial crisis, shows that rates rise with respect to taxes on consumption and income taxes for individuals with high incomes. One of the main ways to increase tax revenues in order to cover the budget deficit is to change tax rates. OECD countries continue to increase rapidly excise rates on alcohol and tobacco products, the Finance Ministry justified its move. The Ministry of Finance said that the excise tax is not only a source of replenishment of the state budget, it also performs a social function caused by the need to reduce consumption of socially harmful products (alcohol and tobacco). The respective draft decree was submitted to the Prime Minister's Office for consideration in December 2013.

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