The Ministry of Economy of the Kyrgyz Republic proposes to implement labeling for cement, both produced within the country and imported.
It is planned that the labeling will come into effect on June 1, and from December 1, the circulation of unlabeled cement will be prohibited.
In the justification for the draft resolution of the Cabinet of Ministers titled "On the introduction of labeling with a molecular marker for certain goods," the Ministry of Economy states:
The purpose of this project is to implement Article 4 of the Tax Code of the Kyrgyz Republic, increase tax revenues to the budget, and improve conditions for the legal cement market in the country. To achieve this, it is proposed to introduce labeling with a molecular marker, which will ensure control and enhance the effectiveness of tax administration.
The project proposes to approve regulations on cement labeling using a molecular marker, which should come into effect on June 1, 2026.
According to the new requirements, both local and imported cement will be subject to labeling, but cement produced for export will not be labeled at the time of shipment.
Currently, there are 5 main cement plants operating in Kyrgyzstan, which contributed 3.03 billion soms to the budget in 2025. Below are the data on cement producers.
No
Cement Producer Name
Annual Production Capacity (million tons)
Tax Revenues in 2025 (thousand soms)
1
OAO "Kant Cement Plant"
1.2
1,082.39
2
OsOO "Sinzhi-Pirim"
1.0
116.17
3
ZAO "Southern Kyrgyz Cement"
2.0
1,301.38
4
OsOO "Southern Construction Materials Plant" (Aravan Cement Plant)
1.2
446.54
5
OsOO "Terek-Tash"
3.0
92.51
Total
8.4
3,039.0
This data shows that, despite comparable or even higher production capacities of individual plants, the volumes of tax revenues vary significantly, which may indicate risks of concealing actual production volumes and, consequently, incomplete tax payments.
The total production capacity of cement plants in Kyrgyzstan is about 8.4 million tons per year. However, the actual cement production in 2024 was 3.12 million tons, and in 2025 it was 4.25 million tons (data presented in the table below).
Thus, the production capacities of local plants exceed the current needs of the domestic market by more than two times, even considering the growth in construction in 2025.
Years
2019
2020
2021
2022
2023
2024
2025
Cement Production Volume, million tons (data from the National Statistical Committee)
2.0
1.88
2.4
2.67
2.96
3.12
4.25
Construction Growth Rate (open sources)
10.6%
7.8%
-4.8%
11.2%
14.3%
31.1%
21.1%
Additionally, in 2025, Kyrgyzstan imported 1.1 million tons of cement, with Uzbekistan (0.69 million tons) and Kazakhstan (0.42 million tons) being the main suppliers (import data presented in the table below).
Years
2022
2023
2024
2025
Import Volume, million tons
0.242
0.198
0.5
1.1
According to open sources, the average wholesale price of cement at Kyrgyzstan's plants is about 6,500 soms per ton, while the average cost of imported cement from Kazakhstan is 4,700 soms per ton. Thus, the price difference is about 1,800 soms per ton, which may indicate an undervaluation of imported cement.
Considering the volumes of cement imports in Kyrgyzstan in 2025, potential losses to the budget from VAT may amount to approximately 237.6 million soms per year due to the undervalued cost of imported cement.
In this regard, to ensure proper control over the volumes of production, sale, and import of cement, enhance the transparency of its circulation, and strengthen tax administration, as well as account for all produced, sold, and imported goods, it is advisable to implement a cement labeling system using molecular markers.
The application of this system will ensure transparency at all stages of product circulation, minimize concealment risks, and enhance the reliability of data on actual production and import volumes, which, in turn, will lead to increased tax revenues to the budget by reducing the shadow turnover.
Preliminary estimates suggest that this measure could double the volume of the legal cement market within three years and increase tax revenues from producers by 3 billion soms per year.
Moreover, the introduction of cement labeling could help legalize related industries, such as concrete plants, reinforced concrete product factories, and construction companies, ultimately leading to an increase in tax revenues from these companies by 8 billion soms annually.
The labeling process involves adding a molecular marker in specified concentrations to the product composition, which does not affect its physicochemical properties and quality. The presence of the marker will be checked using specialized devices.
Considering the volumes of cement imports in Kyrgyzstan in 2025, potential losses to the budget from VAT may amount to approximately 237.6 million soms per year due to the undervalued cost of imported cement.
In this regard, to ensure proper control over the volumes of production, sale, and import of cement, enhance the transparency of its circulation, and strengthen tax administration, as well as account for all produced, sold, and imported goods, it is advisable to implement a cement labeling system using molecular markers.
The application of this system will ensure transparency at all stages of product circulation, minimize concealment risks, and enhance the reliability of data on actual production and import volumes, which, in turn, will lead to increased tax revenues to the budget by reducing the shadow turnover.
Preliminary estimates suggest that this measure could double the volume of the legal cement market within three years and increase tax revenues from producers by 3 billion soms per year.
Moreover, the introduction of cement labeling could help legalize related industries, such as concrete plants, reinforced concrete product factories, and construction companies, ultimately leading to an increase in tax revenues from these companies by 8 billion soms annually.
The labeling process involves adding a molecular marker in specified concentrations to the product composition, which does not affect its physicochemical properties and quality. The presence of the marker will be checked using specialized devices.
The record from the Ministry of Economy of Kyrgyzstan proposing the introduction of molecular labeling for cement first appeared on K-News.
