Tuesday, 18, May, 2021

Shavkat Mirziyoyev signed the Additional measures to further develop the electrical industry and increase the competitiveness of domestic products decree.

So, starting from March 1, 2021, the procedure for compensation by the State support fund for the entrepreneurship up to three years has been established for the part of the interest rate that surpasses the interest rate of the Central Bank, but not more than 5 percentage points in the part of up to 20 billion soums of loans issued to the electrical industry enterprises in the national foreign currency for the implementation of the electrical and household appliances projects, as well as increasing working capital, with an interest rate not exceeding 1.5 times the size of the interest rate of the Central Bank.

The Decree also provides for the implementation of the following measures to support enterprises in the electrical industry by the Export Promotion Agency:

- the provision of subsidies until January 1, 2024 to cover 50 percent of the cost of transportation by road, rail and air when exporting electrical-technical and electrical products to all countries, but not more than 15 percent of the value of export products (excluding transport expenses) by road, 20 percent - by rail;

- provision of guarantees as collateral when obtaining guarantees of domestic banks for making (return) of advance payments, performance of contract terms in foreign currency and ensuring warranty periods for the supplied goods (works, services) within the framework of tenders (bidding), regardless of funding sources , in the amount of up to 50 percent of the guarantee amount, but not exceeding US$ 3 million.

The President also instructed to provide tax reliefs from April 1, 2021 to January 1, 2024 in the form of a 50 percent reduction in income tax and property tax rates to enterprises in the electrical industry, the amount of proceeds from the sale of electrical products for which at the end of the reporting period is at least 80 percent of total receipts.

The funds released from the provision of tax reliefs cannot distributed as dividends, but are directed to the creation of new production facilities and the modernization of existing facilities.

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