Uzbekistan developing small industrial zones

tashkent-c46

TASHKENT (TCA) — Small industrial zones have been created and are successfully operating on the basis of previously idle enterprises in the Yunusabad, Sergeli and Yakkasaroy districts of Uzbekistan’s capital city Tashkent. The small industrial zones have 513 small enterprises engaged in the production of textile, chemical, food, and electrical products, furniture, modern building materials and other finished products demanded on the domestic and foreign markets, the Jahon information agency reports.

In 2016, these enterprises exported goods for more than 140 million US dollars, created more than 11 thousand new jobs.

To further support the development of small enterprises, the Decree of the President of Uzbekistan “On the establishment of small industrial zones in the city of Tashkent” was adopted.

According to the decree, production areas and land plots located in the small industrial zones are given to business entities for long-term lease for 10 years with further extension for another 10 years at preferential rental rates.

In accordance with the document, the Guarantee Fund of Small Industrial Zones in Tashkent will be created.

The Fund provides the participants of the SIZs with collateral for loans of commercial banks, provided that their level of production localization is not less than 60 percent and exports account for at least 10 percent of the total output.

Participants of small industrial zones are also exempt from the property tax and corporate income tax for two years. Benefits are extended additionally for two years with the sale of at least 30% of the total output for export.

Sergey Kwan

TCA