Investment and Foreign Trade Ministry proposes to abolish benefits for cement import

In Uzbekistan, it is planned to abolish benefits for the import of cement, follows from the project of the president, published on April 23 by the Ministry of Investment and Foreign Trade (MIFT).

In January 2018, the President signed a decree that approves the list of products for the import of which a concession is granted on the payment of customs duties until January 1, 2020. It includes cement, asbestos, timber, lumber and coal.

Nowadays, the MIFT proposes to remove cement from this list. It is expected that this will improve the efficiency of production of building materials, create an equal competitive conditions in the market and encourage organization of in-depth processing of local raw materials. Another reason is an increase in domestic production.

Following the results of the first quarter of 2019, Uzbekistan imported cement worth of $31.3 million, which is 25.5% more compared to the same period last year. In general, cement accounts for 10.7% in the structure of imports of building materials. 

One of the main suppliers of cement to the country is Kazakhstan – in November 2018, the Kazakh manufacturer sold 1,500 tons of cement. The company plans to export more than 50% of its products, which is about 250,000 tons of cement per year.

As for local cement production, the Chinese company is building a cement plant in Samarkand worth $420 million (construction to be completed in 2023). Also, in Angren, a cement plant is under construction, which will be the largest in the region. It is expected that the republic will receive the first batch of products from it already in 2020.