31.08.2021

Uzbekistan will analyze the possibility of reducing the income tax rate of cement producers

President of the Republic of Uzbekistan Shavkat Mirziyoyev held an open dialogue with entrepreneurs of the country. The event, which became the first meeting in this format, was attended by about 10 thousand entrepreneurs.

One of the entrepreneurs, director of Karakalpak sement Shavkat Azizov, said that the plant was created in 2017 with a capacity of 400 thousand tons of cement per year. It is planned to expand the capacity to 1.2 million tons of cement per year due to the construction of a new plant.

The businessman stated that in the first six months of this year, the average exchange price of cement from local producers amounted to 588 thousand soums per ton, while when imported, the cost of products is estimated at 12-13% cheaper - at 521 thousand soums.

“Plants producing cement cannot compete with imported cement. Cement producers pay income tax at a rate of 20%, I ask you to consider the issue of reducing this rate on an equal basis with everyone else - to 15%,” noted Shavkat Azizov.

The President said that over the last 5 years, cement production in Uzbekistan doubled - from 8 million to 16 million tons. At the same time, the projects were implemented by the entrepreneurs themselves without government intervention, he noted.

“We have imported about 2.5 million tons of cement from neighboring countries. Indeed, from the point of view of competition, there are questions. This problem is related to the budget, but this is a large industry, it has the potential for further development. We can say that cement was the driver of the development of the construction materials sector,” the head of state stated.
Shavkat Mirziyoyev instructed the responsible executive to analyze prices for cement products within a month.

“Count it again. It should be reduced to 15%, or to 10%, or to 8%. But this analysis must be scientifically substantiated. You need to meet with the heads of cement plants and give me proposals within a month,” demanded the president.

Currently, cement producers are subject to a 20% income tax rate in Uzbekistan.

Import of cement to Uzbekistan increased significantly after April 1, 2021 - from that day, a zero rate of customs duties was established on the import of cement into the country, which previously amounted to 30%.
Region: Uzbekistan
Source: Gazeta.uz
Tags: statistics
The use of materials published on the site is allowed only with the reference to the source (the journal «Cement and its application») and a hyperlink to the quoted material.
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The use of materials published on the site is allowed only with reference to the source (the journal «Cement and its application») and a hyperlink to the quoted material.
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