The LDPR Initiative May Strike a Blow to Kyrgyzstani Tailors
Leonid Slutsky, head of the LDPR party, proposed to introduce VAT on imported light industry goods if there are local analogues available in the Russian market. Although this initiative is aimed at combating Western and Asian brands, it could also negatively impact countries within the Eurasian Economic Union, including Kyrgyzstan.
The textile industry in Kyrgyzstan plays an important role as a supplier of clothing to Russia. Exports to this country are a primary source of income for local manufacturers operating under the free movement of goods within the EAEU. The introduction of new taxes or quotas of 30% on "purely Russian" goods on marketplaces could create serious obstacles for Kyrgyz products that traditionally compete in the mid and low price segments.
Slutsky emphasizes the need to create a "fair market" where foreign companies will be taxed equally with Russian manufacturers. However, experts warn that uncertainty in the wording could lead to producers from EAEU countries also facing "tax pressure." Ignoring preferences within the union will not only raise clothing prices for Russian consumers but also threaten economic ties with Kyrgyzstan, where textile enterprises have long been investing in quality and logistics for supplies to Russia.
Additionally, the LDPR proposes to reduce commissions on marketplaces for those who use raw materials produced in Russia. This could put Kyrgyz companies that use imported fabrics at a disadvantage on major online platforms such as Wildberries and Ozon.
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