PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Marie K. Thompson
DATE: June 16, 2004
Kyrgyz Trade
Association Achieves Remarkable Lobbying Feat
Osh, Kyrgyzstan, June 16, 2004—The Association of
Agribusinessmen of Kyrgyzstan (AAK), an IFDC-supported trade
association (through funding from USAID), has accomplished an
historical feat for the agricultural sector in the Kyrgyz Republic
by successfully spearheading a lobbying and advocacy effort towards
the elimination of the value-added tax (VAT) on fertilizer and crop
protection products (CPPs). The removal of this tax translates into
millions of dollars saved for small and large farmers, fertilizer
dealers, and CPP suppliers. Ultimately this saving will result in
production of food for the Kyrgyz consumer at lower prices while at
the same time discouraging the supply of low-quality contraband
products.
After only 2 years, AAK has developed into the leading agricultural
association in Kyrgyzstan. The organization now counts on its roster
more than 150 dues-paying members, including large and small dealers
of fertilizer, CPPs, seeds and other farm supplies.
During the AAK General Assembly meeting last August, the members
voted unanimously to address this issue with their elected leaders
in the Kyrgyz Government. After several months of research, they
held a round table discussion of the issue in the city of Osh with
six members of the Kyrgyz Legislative Assembly and representatives
from processing companies, international organizations, and farmers.
After the round table meeting, a formal proposal was submitted to
the President, Prime Minister, Parliamentarians, and members of the
Ministry of Agriculture of the Kyrgyz Republic. During the past few
months members of the trade association have been actively involved
with the Presidential Task Force on developing the new tax code.
The decree, which was signed by the Honorable Prime Minister, N.
Tanayev on May 13, 2004, reduces the rate of the VAT from 20% to 0%
for the importation and supply of mineral fertilizers and CPPs to
rural commodity producers. The decree came into effect on May 14,
2004, and stated that the control over the execution of the given
decree would be handled by the Ministry of Finance of the Kyrgyz
Republic.
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