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Uzbek president exempts Mercedes-Benz production company from taxes

Business Materials 8 July 2010 13:05 (UTC +04:00)

Uzbekistan, Tashkent, July 8 / Trend D. Azizov /

Uzbek President Islam Karimov has exempted a joint venture manufacturing Mercedes-Benz passenger buses from taxes for five years, a State Tax Committee source told Trend.

Mercedes-Benz Central Asia is exempt from paying taxes to the Uzbek Financial Ministry's Road, including customs duties on goods imported for production and taxes on after-sales services.

Official dealers and leasing organizations are also exempt from making payments to the Road Fund.

The president instructed the government to develop and adopt a resolution to produce the buses on vacant lots of the Chkalov Tashkent Aircraft Production Association.

Mercedes-Benz Central Asia will produce 600 buses annually. The first buses will be produced in September 2010. The company will manufacture urban, intercity and tourist buses.

Uzavtosanoat (Uzavtoprom) and Mercedes-Benz Central Asia, a wholly owned Daimler AG subsidiary, signed an agreement to form a joint venture in May.

The joint venture was organized as a limited liability company with a capital of $8 million. Uzavtosanoat owns 49 percent, and Mercedes-Benz Central Asia owns a 51-percent stake.

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