Baku, Azerbaijan, July 4
By Fikret Dolukhanov – Trend:
Uzbekistan will implement zero customs duty on import of cars issued no more than two years ago and costing $40,000 or more, Uzbek media reported on July 3.
The excise tax on such cars will be 20 percent of the customs value.
Zero customs duty will be applied to electric vehicles as well.
The new rates of customs duties on the two categories of cars imported into Uzbekistan will come into force from January 1, 2019.
Changes are provided by the decree of the President of Uzbekistan “On measures to further streamline foreign economic activity and improve the system of customs and tariff regulation in Uzbekistan”.
Director of the Center for Economic Development in Uzbekistan Yuliy Yusupov told Trend that budget of Uzbekistan lost lots of money because of protectionism and monopoly in the automobile industry, as factories do not pay taxes, and prohibitive customs payments do not allow receiving budget revenues from the sale of imported cars.
President of Uzbekistan Shavkat Mirziyoyev during a special meeting on June 26 delivered a serious blow to the country's automobile industry. He noted that the automobile industry plays a vital role in the country's economy, however, production and exports have recently declined. The head of state criticized the widespread corruption, bribery, nepotism at all levels in the sphere.
The president reminded that there are a lot of debts in the structure of Uzavtosanoat JSC (the country's major car manufacturer). Several enterprises of the company completed 2017 with losses. For a number of years the export of cars was carried out at a price lower that the prime cost and no action was taken to actually reduce the latter.
---
Follow the author on Twitter: @FDolukhanov