New FEZ created in Uzbekistan

By Azernews

By Kamila Aliyeva

A free economic zone (FEZ) “Namangan” was created in Uzbekistan, according to the decree of the Uzbek head of state.

The new FEZ, whose main task is the comprehensive development of the region through the organization of modern facilities for the deep processing of mineral and agricultural raw materials, the production of high-tech products, and the export of goods to neighboring countries, will be located in the Chust district of the Namangan region.

The term of functioning of FEZ will be 30 years with the possibility of its further extension. During the entire period, special tax, customs and currency regimes will work on the territory of the zone.

In FEZ, investors will be provided with a wide range of benefits and preferences. So, depending on the volume of investments, they will be released from payment of land tax, profit tax, property tax of legal entities, tax on improvement and development of social infrastructure, a single tax payment for micro firms and small enterprises, as well as mandatory contributions to target state funds for various periods.

The investors with the volume of investment from $300,000 to $3 million receive benefits for a period of three years, the investor with the volume of investments from $3 million to $5 million – for a period of five years, from $5 million to $10 million – for a period of seven years, and more than $10 million – for a period of 10 years. In addition, investors are exempt from customs duties on imported raw materials, as well as materials and component parts used in production of the products aimed at export.

Over 11.5 billion soums will be allocated for development of the infrastructure of the zone, construction of roads, fiber-optic communication lines, electricity, gas and water supply networks.

Over 17 free economic zones currently operate in Uzbekistan. They implemented about 69 projects for a total of $512 million.