UzAuto Motors, BYD and several other large firms continue to benefit from major tax relief programs, report reveals

This data comes from an analysis conducted by the Anti-Corruption Agency, based on information disclosed by the State Tax and Customs Committees regarding the utilization of tax and customs incentives for the first six months of 2024.

According to the findings, the total value of tax and customs incentives during this period reached 63.4 trillion UZS, significantly lower than the 127.1 trillion UZS recorded in 2023. This amount represents the funds retained by businesses and organizations as a result of these exemptions.

Of the 63.4 trillion UZS, 39 trillion UZS were attributed to tax relief, while 24.4 trillion UZS were linked to customs exemptions.

Top Beneficiaries of Tax and Customs Incentives:

• UzGasTrade, the company responsible for the centralized purchase and sale of natural gas in Uzbekistan, received 1.1 trillion UZS in incentives. Earlier, the Deputy Chairman of the State Tax Committee, Mubin Mirzayev, reported that UzGasTrade was reimbursed 1 trillion UZS in VAT for gas imports in the first half of the year.
• UzAirways benefitted from 1.08 trillion UZS in tax incentives, while Uztemiryo’llar received 558 billion UZS in tax relief.
• Asia Trans Gas, the operator of the Central Asia–China gas pipeline through Uzbekistan, was granted 462.7 billion UZS in incentives.
• Enter Engineering, a major contractor, received 570 billion UZS in customs exemptions.
• Uzbektelecom was provided with 432 billion UZS in incentives, while Shamol Zarafshon Energy, a subsidiary of Masdar (UAE) building a wind power station in Uzbekistan, received 375 billion UZS.
• RWS Optimum, a producer of concrete sleepers for railway tracks, benefitted from 353 billion UZS in exemptions, and Holos, a customs broker, received 315 billion UZS.
• UzAuto Motors received 317 billion UZS in incentives, and BYD Uzbekistan Factory was granted 274 billion UZS.

The report also highlighted a continuing trend of significant reductions in tax liabilities by large energy enterprises, indicating a shift in the fiscal contributions of major corporations in this sector.