GM Uzbekistan won't reduce car prices

Business Materials 11 January 2018 09:47 (UTC +04:00)
GM Uzbekistan refuted rumors that prices for domestic cars will be declined in Uzbekistan due to the change in the excise tax rate
GM Uzbekistan won't reduce car prices

Baku, Azerbaijan, Jan.11

By Nigar Guliyeva – Trend:

GM Uzbekistan has denied rumors that prices for domestic cars will be decreased in Uzbekistan due to change in the excise tax rate.

Under the presidential decree "On Priority Measures for the Liberalization of Monetary Policy" dated Sept.2, it was determined that prices and tariffs for goods, works and services, as well as minimum requirements to the authorized capitals of companies are determined only in national currency.

The Uzbek producer explained why the excise duty was lowered, and why this will not affect the reduction in the final cost of its products.

"To avoid a sharp jump in prices for domestic cars in the conditions of changing the national currency rate, the Cabinet of Ministers signed a decree "On additional measures to improve pricing for products produced by GM Uzbekistan JSC", which approved the level of wholesale and retail prices. The cost of cars was fixed at the exchange rate set by the Central Bank of Uzbekistan as of Aug.31 (4210.35 soums per USD).

To compensate for the negative impact of the exchange rate on the activities of GM Uzbekistan when calculating wholesale and retail prices, the excise tax rate for passenger cars of GM Uzbekistan JSC was approved (in September 2017) at the level of at 5 percent, the company said in a statement.

GM Uzbekistan announced that this allowed to compensate for the increase in costs due to exchange rate differences and to ensure the stability of the level of retail prices for cars.

Thus, the reduction in the excise tax on cars sold by GM Uzbekistan, approved by the presidential decree, is applied from Sept. 5, 2017.

"Accordingly, price reductions due to changes in the excise tax rate are not foreseen," the company said.

The production of cars by General Motors Uzbekistan Ltd decreased by 7.4 percent in 2017 and amounted to more than 82,000, whereas in 2016, the production decreased by 52.5 percent, and in 2015 – by 24.5 percent.