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Home / Politics / Small industrial zone planned for launch in Syrdar...

Small industrial zone planned for launch in Syrdarya region

The portal of Regulation impact assessment system has published the draft decree of the President of the Republic of Uzbekistan "On establishment of small industrial zone in the city of Yangier of Syrdarya region" for public comment.

The purpose of the adoption of this document is to further the development of the industrial potential of the city of Yangier, the creation of favorable conditions for attracting investments in the creation of small businesses, new industries for the production of competitive products, efficient use of road transport and engineering infrastructure, creation of new jobs and increasing incomes.

According to the project, it is planned to create a small industrial area in the city of Yangier.

The main activities of the industrial zone are:

- accelerated development of small business, employment, raising the entrepreneurial income of the population of Syrdarya region;

- implementation of projects on creation of new modern industries in the field of textile, footwear and leather, environmentally safe chemical, food, electrical industry, production of building materials, deep processing of fruits and vegetables and other areas;

- ensuring complex and effective use of production and resource potential of the Syrdarya region;

- localization of production of high-tech products based on local raw materials through establishing close cooperative ties and development of industrial cooperation between enterprises of the Republic.

According to the document, the operation term of the industrial zone is 30 years with the possibility of its subsequent extension. Primarily small businesses will be engaged in the industrial zone. The selection of projects on creation of production facilities and location of the investors in the industrial zone will be carried out by the Council for the coordination and management of activities of the small industrial zone in the city of Yangier.

The functions of operational management of small industrial zone are to be entrusted to the Deputy khokim of Syrdarya region on economic and social development, and the Group for business development and business environment of Syrdarya region.

The participants of industrial zones will be exempt from paying:

- land tax, profit tax, property tax, tax for accomplishment and development of social infrastructure, single tax payment for microfirms and small enterprises, obligatory deductions to the Republican road fund and off-budget fund for reconstruction, refurbishment and equipping of general schools, professional colleges, academic lyceums and medical institutions under the Ministry of Finance of the Republic of Uzbekistan;

- customs payments (except fees for customs clearance) for equipment, raw materials, materials and spare parts, as well as steel and building materials imported for own production needs within the framework of the implementation of projects on the lists approved by the Cabinet of Ministers of the Republic of Uzbekistan.

Thus, the above benefits are provided for a period of 3 years, under conditions when investments are not less than 2000 times of the minimum wage.

If the annual revenue of industrial zone participant is less than 1000 times of the minimum wage, provided benefits shall be canceled with the restoration of obligations on payment of taxes, customs and obligatory payments in the relevant accounting year in the manner prescribed by law.

In the case of sale or donation of equipment, raw materials, materials and components, as well as steel and building materials, delivered with the use of customs privileges during three years from the date of importation, customs duties are levied in full in the manner prescribed by law.
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