Azernews.Az

By Kamila Aliyeva

Uzbekistan will abolish customs duties for two types of vehicles (cars) starting from 2019.

Uzbek President Shavkat Mirziyoyev signed a resolution "On measures to further streamline foreign economic activity and improve the system of customs and tariff regulation of the Republic of Uzbekistan" on June 29.

According to the document, from January 1, 2019, a zero customs duty is imposed on vehicles operating solely on an electric motor (electric vehicles).

The zero customs duty will also be applied to cars that were produced no more than two years ago and cost more than $ 40,000. At the same time, the excise tax on these cars will be 20 percent of the customs value.

In Uzbekistan, there are strict protectionist measures to import cars and trucks of foreign production. There are customs duties in the amount of 70 percent of the customs value + 3 dollars per cubic cm of the motor. The amount of duty depends on the year of manufacturing, the country of the producer and the volume of the engine.

Car industry occupies one of the leading places in the economy of Uzbekistan. A significant number of the country's population is employed in this sector of industry.

The vast majority of automotive enterprises in Uzbekistan are joint ventures with foreign partners. This shows that the country is successfully working to create a favorable investment climate.

The main production companies are GM Uzbekistan, SamAvto, JV MAN Auto-Uzbekistan and GM Powertrain Uzbekistan.

The automotive industry has undergone significant reform last year. Simplification of the procedure for buying cars is intended to increase the demand for them, and the expansion of export opportunities will make this Uzbek brand even more popular abroad.

Since 1998 Uzbekistan has been a member of the International Organization of Motor Vehicle Manufacturers (OICA).

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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