According to the association, the new initiative suggests a transition from the current rate of 3 soms per liter to a differentiated system with excise taxes ranging from 5 to 11 soms per liter, as well as the introduction of additional excise taxes on energy drinks and salty snacks.
It is planned that the funds from the excise taxes will be directed to the National Health Fund, which finances prevention programs and the healthcare system.
Association representatives note that they support initiatives to combat non-communicable diseases; however, they emphasize the need for a comprehensive analysis of the proposed measure, taking into account its economic and social consequences.
The main risks include an increase in production costs and retail prices, loss of competitiveness for domestic producers, a decrease in the volume of agricultural raw material purchases from farmers, and reduced capacity utilization of processing enterprises in the regions.
There is also a risk of local products being replaced by imports in the context of an open market, as well as administrative difficulties—the differentiation of rates based on sugar content will require the establishment of a developed laboratory and control infrastructure. The association expresses concerns that tightening excise taxes may lead to increased use of artificial sweeteners and a rise in shadow trade.
Furthermore, the association emphasizes the need to align this initiative with the government's existing priorities in supporting processing, ensuring food security, and controlling inflation.
In light of the above, the organization calls for the consideration of rejecting the proposed increase in excise rates and continuing discussions among business representatives, relevant agencies, and experts.
“State policy must be consistent. We support measures to improve public health, but such decisions should be made with consideration of their real economic consequences,” said Rustam Baltabaev in a statement.
