The Draft Resolution of the President of the Republic of Uzbekistan “On additional measures for the implementation of an investment project for the construction of the Tashkent Central Park multifunctional complex” was submitted to the Antimonopoly Committee through a unified electronic system for the development and approval of draft regulatory legal acts (project.gov.uz).
According to the draft Resolution, on May 27, 2020, Taskent Merkez Park Gayrimenkul Yatirim Anonim Sirketi (Republic of Turkey) and UzTur Investment and Development LLC signed an investment agreement for the implementation of an investment project on the Construction of the Tashkent Central Park multifunctional complex.
It says that the investor has been released until January 1, 2024:
- in addition to a single social payment, from all types of taxes and fees, a single social payment to the wage fund for foreign specialists, from customs duties in the “temporary import” regime on imported and processed construction equipment, machinery and equipment, temporary buildings and structures, transport funds, value added tax – for work performed (provided) by investors, contractors and subcontractors, non-residents of the Republic of Uzbekistan, income tax from individuals – by foreign specialists participating in the investment project;
- before January 1, 2022 – from the payment of customs duties on the import of technological documents, materials, raw materials, equipment, spare parts, components, as well as rolled metal (excluding customs clearance fees), and from January 1, 2022 to 2024 – approved in in accordance with the established procedure, on the basis of the lists, these goods are exempt from payment of customs duties (except for customs clearance fees and value added tax).
In addition, the draft regulation also allows investors, contractors and subcontractors to place goods imported under the investment project in their warehouses.
In accordance with Article 12 of the Law “On Competition”, government bodies and local government bodies are prohibited from unreasonable granting certain economic entities benefits, preferences and privileges that put them in an advantageous position in relation to other economic entities operating in the commodity or financial market.
The Decree of the President of the Republic of Uzbekistan dated 09/08/2017 “On Approval of the Concept of Administrative Reform in the Republic of Uzbekistan” provides for measures to establish restrictive measures on the creation of commercial organizations with the participation of the state and the reorganization of existing enterprises in areas in which the private sector effectively functions, as well as refusal from the practice of granting to certain economic entities exclusive rights, individual benefits and preferences that limit the development of a healthy competitive environment.
According to the Decree of the President of the Republic of Uzbekistan of the Republic of Uzbekistan dated May 31, 2018 “On measures to radically improve the procedure for granting benefits and preferences” tax and customs privileges and preferences are provided by laws and acts of the President of the Republic of Uzbekistan as a whole for industries, spheres of activity, territories, temporary privileges are provided by acts of the President of the Republic of Uzbekistan for a period not exceeding 3 years, individual privileges are provided by acts of the President of the Republic of Uzbekistan, in exceptional cases, for implementation of socially significant projects in industries where there is no interest of the private sector in investing, in the presence of specific social or economic reasons, or in accordance with international treaties of the Republic of Uzbekistan.
Considering that this draft resolution contradicts Article 12 of the Law of the Republic of Uzbekistan “On Competition”, the Concept of Administrative Reforms in the Republic of Uzbekistan, approved by the Decree of the President of the Republic of Uzbekistan No. UP-5185 dated 09/08/2017, Resolution of the President of the Republic of Uzbekistan No. PP-3756 dated 31.05.2018 , the adoption of this draft resolution is considered by the Committee inappropriate.
The opinion of the Committee on the draft can be found at the following link (ID 18516).
Press office of the Antimonopoly Committee