Kazakhstani producers said that it is impossible to compete with Uzbek manufacturers due to unequitable conditions and high utility prices, abctv.kz said.
Uzbekistan is the main trading partner of Shymkent and Turkestan provinces of Kazakhstan and accounts for over 30% of the total trade turnover.
However, according to Baurzhan Berdaliyev, the expert of Shymkent Chamber of Entrepreneurs, Uzbekistan has imposed unilateral tax duties to protect its 30 million market.
For example, as of January 2019, Kazakh producers will have to pay 25% excise tax when exporting soft drinks, now this tax is 50%. In spite of the duty being cut, Kazakh companies face unequal competition against Uzbek producers, as there is no excise tax for soft drinks in Kazakhstan for Uzbek producers. The situation is similar for the carpet producers.
Also, the competitiveness of Kazakhstani goods versus Uzbekistan is aggravated by a considerable difference in utility prices, the news publication highlighted.
