President Shavkat Mirziyoyev unveiled a business stimulus package during an open dialogue with business leaders in the Khorezm province today, August 18.
Mirziyoyev noted that vacant land plots and underused state assets generate real economic value only when they are put to work — used to launch projects, create jobs and boost exports.
The initial down payment required to purchase state assets will be cut from 30 percent to 15 percent. Entrepreneurs who pay the full value of an asset within six months will receive a 25 percent discount, while buyers who pay half the cost upfront will be able to pay the remaining balance in interest-free installments over seven years.
In addition, if state property remains unsold after three months, its starting price will be reduced in stages, by up to 10 percent, and the length of the auction process will be cut in half.
Land auctions to include a 'ready package' of permits
The president also instructed officials to simplify the process of starting construction on land plots bought at auction. At present, entrepreneurs can spend anywhere from six months to a year gathering the paperwork needed to break ground after buying land.
Going forward, hokims — the heads of provinceal and district administrations — will be required to put land plots up for auction as a "ready package," complete with a construction permit, an architectural and planning brief, and a project design. This will allow entrepreneurs to begin building immediately after acquiring a plot. The upfront payment for the infrastructure fee will also be lowered, from 20 percent to 5 percent.
Banks to sell assets on soft terms
A separate step applies to property held on banks' balance sheets. According to the president, banks will be allowed to sell roughly 2,500 such properties (about 2,411 of them) worth a combined 9 trillion soums, at reduced prices, with no down payment and interest-free installment plans. Entrepreneurs who purchase such property will be exempt from land and property taxes for one year.
Bonded industrial zones planned for five free economic zones
Mirziyoyev also announced new steps to localize production. A list of 50 priority product categories has been drawn up for domestic manufacturing.
To support this, bonded industrial zones will be established on parts of the Navoi, Jizzakh, Namangan, Urgut and Hazarasp free economic zones. Enterprises operating there will be exempt from all taxes and customs duties on imported raw materials and components, and if a product's localization rate exceeds 30-40 percent, the same preferential terms will apply when it is sold on the domestic market.
The bonded zones are also expected to host an integrated chain of modern R&D centers, laboratories, and engineering and technical services. A total of $50 million will be allocated to provide entrepreneurs with ready-made production facilities equipped with the necessary infrastructure.
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