Uzbekistan to subsidize domestic exporters to attract foreign investment and boost export

Source: Xinhua| 2019-05-26 15:37:18|Editor: xuxin
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TASHKENT, May 26 (Xinhua) -- Uzbekistan will provide a range of state subsidies to domestic exporters, including up to 50 percent compensation of costs when goods are exported via railways, a presidential decree said.

The document, published on Saturday, said that the measures were needed to expand financing mechanisms and insurance protection of the export activities in the country.

However, railway transportation subsidies will not apply when domestically produced goods are exported to neighboring countries, according to the document.

Other subsidies include reimbursement of the interest rates on pre-export loans of the commercial banks and guarantees of loans from the commercial banks up to 50 percent on the pre-export loans for the companies exporting finished goods, not raw materials.

Uzbek exporters of the finished goods would be able to postpone of the value added tax payment for a period of up to 120 days if they were importing raw materials, components and others used in manufacturing of the exported products, the document said.

Uzbek President Shavkat Mirziyoyev has been carrying out a range of economic reforms to make the Central Asian country attractive to foreign investors and encourage domestic producers to boost export.