The Ministry of Economy of the Kyrgyz Republic intends to introduce labeling for cement, concerning both local production and imported goods.
It is planned that the labeling will be introduced from June 1, and from December 1, the circulation of products without the appropriate labeling 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 development of the draft resolution is aimed at implementing Article 4 of the Tax Code of the Kyrgyz Republic, with the goal of increasing tax revenues to the budget and enhancing the legality of the market in the production and import of cement into the country. To achieve this goal, it is proposed to implement control and strengthen tax administration through the labeling of this product with a molecular marker.
As part of this project, it is proposed to approve the Regulation on the labeling of cement with a molecular marker in Kyrgyzstan, according to which, starting from June 1, 2026, cement produced or imported into the country will be subject to labeling. An exception will be made for cement produced for export purposes.
Currently, five main cement plants operate in Kyrgyzstan, which contributed 3.03 billion soms in tax revenues to the budget in 2025. Below is a table with data on cement manufacturers.
No
Manufacturer Name
Production Capacity (million tons per year)
Tax Revenues in 2025 (thousand soms)
1
OAO "Kant Cement Plant"
1.2
1,082.39
2
OsOO "Sinyzhi-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
Sum
8.4
3,039.0
These data indicate that the production capacities of individual plants may be comparable or even higher than others; however, the sizes of tax revenues vary, creating conditions for possible concealment of actual production and sales volumes, as well as incomplete tax payments.
The total production capacity of the country's cement plants is about 8.4 million tons per year. However, actual cement production in 2024 amounted to 3.12 million tons, and in 2025 — 4.25 million tons (data are provided in the table below).
This indicates that the production capacities of cement plants are twice as high as the current needs of the domestic market, even taking into account the growth rates in construction in 2025.
Years
2019
2020
2021
2022
2023
2024
2025
Cement Production (million tons, data from the National Statistics Committee)
2.0
1.88
2.4
2.67
2.96
3.12
4.25
Construction Growth Rates (according to 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 the main suppliers being Uzbekistan with 0.69 million tons and Kazakhstan with 0.42 million tons (data on annual cement imports are provided in the table below).
Years
2022
2023
2024
2025
Import (million tons)
0.242
0.198
0.5
1.1
According to open data, the average wholesale price of cement at Kyrgyzstan's plants is about 6,500 soms per ton, while the average price of imported cement from Kazakhstan is 4,700 soms per ton. This creates a significant difference of 1,800 soms per ton, which may indicate underpricing of imported cement.
Considering the volume of cement imports in 2025, potential losses for the state budget from VAT could amount to approximately 237.6 million soms per year due to the undervalued cost of imported goods.
In this regard, to ensure control over the production, sale, and import of cement, increase the transparency of operations, and improve tax administration, as well as to fully account for produced and imported products, it is advisable to introduce a cement labeling system using molecular markers.
This measure will enhance the transparency of product circulation at all stages, reduce the risks of data concealment, and improve the accuracy of information on actual production and import volumes, which, in turn, will lead to an increase in tax revenues to the budget by reducing the shadow sector.
According to preliminary estimates, the implementation of 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, cement labeling will help legalize related industries, such as concrete plants and construction companies, which will allow total tax revenues from these enterprises to reach 8 billion soms per year.
The labeling will be carried out by adding a molecular marker to the composition of the cement in established concentrations, which will not affect its physicochemical properties and quality, and the presence of labeling will be checked with special devices.
Considering the volume of cement imports in 2025, potential losses for the state budget from VAT could amount to approximately 237.6 million soms per year due to the undervalued cost of imported goods.
In this regard, to ensure control over the production, sale, and import of cement, increase the transparency of operations, and improve tax administration, as well as to fully account for produced and imported products, it is advisable to introduce a cement labeling system using molecular markers.
This measure will enhance the transparency of product circulation at all stages, reduce the risks of data concealment, and improve the accuracy of information on actual production and import volumes, which, in turn, will lead to an increase in tax revenues to the budget by reducing the shadow sector.
According to preliminary estimates, the implementation of 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, cement labeling will help legalize related industries, such as concrete plants and construction companies, which will allow total tax revenues from these enterprises to reach 8 billion soms per year.
The labeling will be carried out by adding a molecular marker to the composition of the cement in established concentrations, which will not affect its physicochemical properties and quality, and the presence of labeling will be checked with special devices.
The entry from the Ministry of Economy of Kyrgyzstan proposing to introduce molecular labeling of cement first appeared on the K-News website.
