Kyrgyzstan plans to implement mandatory molecular labeling of cement from June 2026 and ban circulation of unlabeled products from December. This is aimed at solving the long-standing problems of production concealment and tax loss in the industry.
The country's five cement plants have an annual capacity of 8.4 million tons, but the actual output in 2025 is only 4.25 million tons, and the capacity utilization rate is less than 50%. The wide differences in tax contributions among enterprises suggest large-scale tax evasion. In 2025, the import volume of cement will reach 1.1 million tons, and the average import price is 1800 som lower than that of domestic cement. It is suspected that the customs value is understated, and the loss of value-added tax alone is estimated to reach 237.6 million som per year. The growth rate of
construction industry far exceeds the growth of cement production, but the market is in periodic shortage, which causes the regulatory authorities to question the underreport of production. The government estimates that the marking system will double the size of the legal market within three years, increase tax revenue by 3 billion som per year, and the compliance of related industries is expected to contribute another 8 billion som. At the
technical level, molecular markers do not affect the quality of cement and can be detected by special equipment. The system treats imported and domestic products equally and is in line with the obligations of the Eurasian Economic Union. Despite public concerns about rising prices, the government emphasizes that ex-factory prices are approved by anti-monopoly agencies and marked profits are turned over to the state treasury, aiming to reduce shadow circulation space rather than increase the burden on enterprises.
This attempt represents an effort to solve regulatory problems and rebuild market order by technical means, and its success or failure will depend on the balance between enforcement and the fight against tax evasion and the protection of supply.
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