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RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of March 17, 2017 No. PP-2843

About measures for creation of additional favorable conditions for conducting business activity in the Republic of Karakalpakstan and the Khorezm region

For the purpose of ensuring the accelerated economic development, creation of optimum conditions for implementation of business activity and expansion of the export potential, and also timely and effective implementation of investment projects in the Republic of Karakalpakstan and the Khorezm region:

1. To determine that the legal entities registered and performing productive activity in the Republic of Karakalpakstan and the Khorezm region are exempted from obligatory sale of the currency earnings regarding export of self-produced industrial output, except for the primary goods included in appendix No. 2 to the Presidential decree of the Republic of Uzbekistan of October 10, 1997 in No. UP-1871 "About Additional Measures for Stimulation of Commodity Export (Works, Services)".

2. To exempt for the period from April 1, 2017 to January 1, 2022 the legal entities registered in the Republic of Karakalpakstan and the Khorezm region, specializing in production of pharmaceutical products and medicines, electrotechnical products (except for cable and conduction products), and also finishing construction materials from the tax discharge on property, the land tax, the tax on improvement and development of the social infrastructure, and also obligatory contributions to Republican road fund under the Cabinet of Ministers of the Republic of Uzbekistan.

To determine that to the legal entities specializing in production, specified in the paragraph the first this Item, legal entities at whom the share of the net revenue from sale of these products in the total amount of sale constitutes at least 60 percent following the results of accounting year belong.

3. To the Ministry of Economics together with the Ministry of Finance, the Ministry of Health, the State Tax Committee of the Republic of Uzbekistan, JSC Uzfarmsanoat, JSC Uzeltekhsanoat and JSC Uzstroymaterialy till April 1, 2017 to develop and approve in accordance with the established procedure the specific list of products relating to pharmaceutical products and medicines, electrotechnical products, and also finishing construction materials to which the tax benefits provided by this resolution extend.

4. JSC Uzbekiston temir yullari to apply railway tariffs on cargo delivery to Frontier of the Republic of Uzbekistan on effective rates of rates for domestic freight transportation within the republic to legal entities of the exporters registered and performing productive activity in the Republic of Karakalpakstan and the Khorezm region.

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