The Presidential Decree “On additional measures to further increase the productive and export potential of the electrotechnical industry” (PP No. 15 of 10.01.2024) sets ambitious targets for Uzbekistan’s electrotechnical industry for 2024-2025, Kursiv reports. These include increasing the processing capacity of copper raw materials to 140,000 tons in 2024 and 160,000 tons in 2025, raising the production volume up to UZS 30.8 trillion ($2.5bn) in 2024 and UZS 38 trillion ($3.1bn) in 2025, and ensuring the export volume of products in the amount of $1.5bn in 2024 and $2bn in 2025.
Financing investment projects
To finance investment projects implemented in the electrical industry, commercial banks will open a credit line for $100mn for 10 years, with a 3-year grace period, at a rate of 5% per annum from 2024 to 2026. Simultaneously, the banks will provide loans to business entities at the rate of 7% per annum (including the bank’s margin - 2%), for 10 years, with a 3-year grace period.
Tax incentives and price preferences
Until January 1, 2027, tax incentives will be granted in the form of reduced rates of income tax and property tax by 50% to enterprises in the electrical industry, the amount of revenues from the sale of electrical products, which amount to at least 80% of total revenues.
From April 1, 2024, domestic manufacturers will be granted price preferences from the DDP (Uzbekistan) price of imported goods in the following amounts within the framework of state procurement:
- 15% - when 3 or more domestic producers participate;
- 12% - with the participation of 2 domestic producers;
- 8% - with the participation of 1 domestic producer.
Quality assurance
The Decree also approved the List of products, the importation of which into Uzbekistan from February 1, 2024, requires the presence of authorized representatives or official dealers of the manufacturer, ensuring their quality, safety, and service guarantees.
Key targets for 2024-2025
The decree provides for:
- Increasing the processing capacity of copper raw materials to 140,000 tons in 2024 and 160,000 tons in 2025.
- Raising the production volume to UZS 30.8 trillion ($2.5bn) in 2024 and up to UZS 38 trillion ($3.1bn) in 2025.
- Ensuring the volume of export of products of $1.5bn in 2024 and $2bn in 2025.
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