Uzbekistan intends to exempt import of oil, meat and potatoes from VAT
19.10.2021

Uzbekistan’s President Mirziyoyev recently held a meeting to study the development of Uzbekistan’s agricultural machinery manufacturing industry and arrange related work.

The meeting pointed out that since the Uzbek cabinet handed over the state-owned shares of Tashkent Agricultural Machinery Factory, Tashkent Machinery Factory, and Chirchik Agricultural Machinery Factory to a third-party trusteeship in July 2020, the production area of ​​Tashkent Agricultural Machinery Factory has been optimized by 68%, and production costs have been optimized. Reduced by 4%, saved approximately 45 billion soums (approximately US$4.5 million), and established a cooperative relationship with the Minsk Tractor Manufacturing Plant. It plans to introduce a production line with an annual output of 3,000 tractors. The development trend is good.

But overall, the current Urumqi agricultural machinery manufacturing capacity utilization rate is only 19%, the localization rate of agricultural machinery equipment is 20%, and the price of domestic machinery is 10-15% higher than that of imported equipment.

Based on this, the meeting decided to relocate the Tashkent Agricultural Machinery Factory, Machinery Factory and other related enterprises to Chilchik, focus on the layout, form an agricultural machinery manufacturing industrial cluster, and optimize the allocation of production factors.

Mirziyoyev instructed the Ministry of Finance of Uzbekistan to provide 500 billion soums in financial allocations for the initial phase of construction. This measure is expected to increase the capacity utilization rate to 85%, increase the localization rate to 50%, reduce production costs by 20%, and increase corporate profits by 10%.

Increase the localization level of tractors jointly produced with Minsk Tractor Plant to 40% in 2022, and to 50% in 2023;

Take measures to reduce the down payment ratio, lower loan interest rates, and extend the repayment period to encourage the purchase of domestically-made equipment;Use advanced international experience for reference to improve the agricultural machinery service system, etc.

Resource: inf.news