The State Tax Service of the Kyrgyz Republic commented on the Association of Oil Traders of Kyrgyzstan's statement on the postponing of mandatory fuel labelling, stressing that the introduction of the system goes in line with existing regulations.

As part of the order of the Antimonopoly Regulation Service of 2 October 2024, the cost of fuel labelling service was approved - 37 tyyns per 1 litre. As explained, the cost of fuel markers will be reviewed every two years under the approved order.

The tax service noted that the fuels and lubricants are imported into the country only from the EAEU countries and are not subject to customs duties. The introduction of fuel labelling will not lead to taxes increase and the innovation purpose is to ensure the legal turnover of fuels and lubricants. Labelling is mandatory for the storage, importing and sale of fuel, while excise tax on labelled products must be paid before application under Article 339 of the Tax Code.

The draft cabinet resolution on the introduction of labelling was publicly discussed and agreed upon with key importers and producers of fuel and lubricants. The proposals were taken into account and a regulatory impact analysis was conducted with the participation of the Oil Traders Association.

The Tax Service also clarified that a 2 per cent deviation in fuel volume is allowed due to the physical properties of fuels and lubricants. Special marker testing devices have been certified by the independent expertise of InterTek. At the suggestion of the business, the contract included sanctions for the operator for late fulfilment of obligations.

The fuel labelling, according to the Agency, is successfully used in more than 20 countries and does not require a pilot project in Kyrgyzstan. A group in Messenger was created for operational support of market participants.

The Tax Service keeps cooperating with businesses in the labelling introduction and is ready to solve arising issues promptly.