In a recent decree, President Shavkat Mirziyoyev has outlined significant measures to propel the development of the electricity sector in Uzbekistan. Key targets for the industry from 2024 to 2025 have been established, featuring ambitious goals such as increasing the processing capacity of copper raw materials to 140,000 tons in 2024 and scaling up to 160,000 tons in 2025.
Targets for the upcoming years
The document further outlines the objective of boosting production volume to UZS 30.8 trillion ($2.5bn) in 2024 and an even more ambitious target of UZS 38 trillion ($3bn) in 2025. Additionally, the decree aims to facilitate product exports, setting the goal at $1.5bn in 2024 and pushing for a substantial increase to $2bn in 2025.
To fuel these aspirations, commercial banks are set to provide substantial financial backing for investment projects in the electrical industry. A credit line of $100mn will be made available from 2024 to 2026, offering a 10-year term with a three-year grace period and a favorable interest rate of 5% per annum.
Improvements for entrepreneurs
Entrepreneurs involved in the electrical industry can benefit from accessible loans at 7% per annum, inclusive of a 2% bank margin. The loan term extends over 10 years, with a generous three-year grace period.
A significant incentive for enterprises comes in the form of tax benefits. Until January 1, 2027, enterprises whose revenues from electrical product sales make up at least 80% of total revenues will enjoy a 50% reduction in income tax and property tax rates.
Starting April 1, 2024, domestic manufacturers participating in public procurement alongside foreign suppliers will receive price preferences. These preferences are structured as follows: 15% with three or more domestic manufacturers, 12% with two domestic manufacturers, and 8% with one domestic manufacturer.
Moreover, a designated list of products requiring an authorized representative or dealer for import into Uzbekistan has been approved, effective from February 1, 2024.
In a related development, Uzbekistan is facilitating installment payments for tariffs on imports of renewable energy sources for up to six months. The Customs Committee is set to launch the "Green Energy" information system by February 1, 2024, which will then be transferred to the Ministry of Energy, ensuring accurate and verified information.
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