Even more benefits and reliefs are planned with an aim to support manufacturers of home appliances. This is provided for in the minutes of the meeting of the government commission headed by Deputy PM Zhamshid Khojaev which took place on December 25.

In particular, the Ministry of Economy and Finance, the Tax Committee and the Uzeltehsanoat association were instructed to submit proposals to the Cabinet of Ministers within two months aiming:

• deduction of expenses of enterprises producing home appliances for marketing research and local advertising from the tax base for income tax using coefficient 2;
• reimbursement of costs associated with conducting marketing and audit research in the field by major auditors and rating agencies;
• as an exception, if enterprises in the electrical engineering sector, including service providers, provide their services at prices below market prices, no tax consequences arise;
• introduction of a deferred payment mechanism for up to 180 days without applying interest at the Central Bank refinancing rate, which is charged to manufacturers of electrical products for late payment of taxes and customs VAT;
• based on foreign experience, the introduction of anti-dumping duties (on average 10%) on the import of household appliances into the country.

While, they are also to make proposals to extend the expiring tax and customs benefits until January 1, 2027.

It is planned to introduce a mechanism for local electrical equipment manufacturers to cover the costs associated with the use of “factoring” and “exchange rate hedging” services by electrical enterprises when exporting products on deferred payment terms to large retail chains in foreign countries.

Enterprises shall also be indemnified up to 50% of transport costs for the import of components and raw materials for the production of export-oriented products not produced in the country. Compensation for travel expenses will be paid to exporters or international freight transport companies.

While also, the Ministry of Economy and Finance, together with the Tax Committee, has been instructed to study and provide the government with an opinion within two weeks on the tax benefits (targeted or non-targeted) that were provided by entrepreneurs in 2017-2022. We are talking about benefits provided to new electrical enterprises (exemption from corporate income tax, property tax, deductions and others), which were provided for a period of 3 to 7 years, depending on the volume of investment.

Exporting enterprises, at the expense of the Export Promotion Agency, shall be fully covered the costs of participating in exhibitions and fairs, even if they do this on their own initiative and at their own expense. They are also planned to cover the costs of obtaining all types of regional and foreign certificates for electrical products.

Responsible ministries and departments have been instructed to book “cheaper” logistics quotas from international logistics companies at the beginning of each financial year. The Export Promotion Agency is appointed as the authorized government agency for the acquisition and distribution of quotas among exporting enterprises with a 1% markup.

As previously reported, the authorities would re-check the certificates of origin (C-1) of “suspicious” electrical equipment.