The President of Uzbekistan issued a directive lowering customs taxes on cars with engine capacities ranging from 1,000 to 1,200 cubic metres, reports UzA.
Until January 1, 2028, the following customs duty rates remain in effect for cars with an engine capacity of up to 1200 cubic metres that have been in production for no more than a year:
- 0% for up to 1,000 cubic metres cm (currently 15% + $ 0.4 per cubic cm);
- 1,000 - 1,200 cubic metres cm - 5% (currently 15% + $ 0.6 per cubic centimetre).
As a result, the overall cost of customs charges will be decreased from 39-43% to 19-23% for cars with engines up to 1000 cubic centimetres, and from 44-52% to 30-36% for cars with engines 1000-1200 cubic centimetres.
UzAuto Motors (Former GM Uzbekistan” has been the only state-owned monopolist producer of vehicles. Last year in 2022, Daryo reported that social media platforms of Uzbekistan exploded once more when reports claimed that UzAuto Motors car prices were skyrocketing.
Well-known economist and Director of Center for Economic Development (Tashkent) Yuliy Yusupov, once expressed his opinion on the activities of UzAuto Motors.
"All we need to do is reduce the high customs fees on imported cars. That's all there is to it; there will be no monopoly, and the company will compete in a competitive market. Only then will it have a chance of becoming competitive. Everyone will gain (except the company's management and their government supervisors), even the budget, which will finally begin to earn more or less good income from customs payments," he stated in his Facebook post in 2020.
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