9 Oct 2017 16:43

Kazakhstan loses $155 mln in VAT due to Chinese goods re-exported through Kyrgyzstan

ASTANA. Oct 9 (Interfax) - Kazakhstan's customs authorities have recorded a sharp increase in Chinese goods imported to Kyrgyzstan and a proportionate increase in similar imports from Kyrgyzstan to Kazakhstan due to an inefficient customs administration, Kazakh Prime Minister Bakytzhan Sagintayev said.

Nevertheless, the Kazakh side is not applying any restrictive measures to Kyrgyz goods, a statement published on Sagintayev's website said.

Kazakhstan's obligations to ensure the freedom of movement of Kyrgyz goods are being fully met despite the information about the re-export of Chinese goods. The losses to the Eurasian Economic Union's member states are estimated at about $100 million, and Kazakhstan's losses in terms of VAT are $155.8 million, according to Sagintayev.

"Moreover, we do not impose customs duties on a number of goods important for Kyrgyzstan despite the fact that we know about the re-export of these goods from the territory of Kyrgyzstan (oil and oil products, ferrous and non-ferrous scrap metal, animal skins, and wool), " he said.

Sagintayev made the statement in connection with Kyrgyz President Almazbek Atambayev's recent speeches.