Government to Offer Tax Breaks for Electrical Engineering Companies
A new market worth 15 trillion UZS established to support local electrical engineering manufacturers
President Shavkat Mirziyoyev was recently briefed on the current state and future prospects of the electrical engineering sector in Uzbekistan. The sector currently contributes 3.5% to the country’s industrial output and accounts for 10% of exports. Last year, the industry produced goods worth 31 trillion UZS, with exports totaling $1.3 billion.
The chairman of the “Uzeltechsanoat” Association announced plans for 290 new projects this year, with investments expected to reach $600 million. Additionally, efforts are being made to increase copper processing to 75%.
Entrepreneurs in the sector will now be allowed to construct ready-made structures in technology parks, which can later be sold to businesses in the electrical engineering and related industries. Incentives are also being proposed, such as exempting entrepreneurs who establish high-tech production from profit and property taxes for three years.
A guaranteed market worth 15 trillion UZS is being created to help facilitate the sale of products through ministries and industrial sectors. Furthermore, a framework is being developed for sourcing renewable energy equipment from local producers for social infrastructure projects.
Officials believe that with these initiatives in place, the sector has the potential to boost exports to $3 billion annually and increase production to 50 trillion UZS. This marks an exciting time for the electrical engineering industry in Uzbekistan as it continues to grow and expand.
