Uzbekistan has introduced tax exemptions, reductions, accelerated depreciation, financing support, and a 10-year tax holiday for qualifying major investors to expand domestic electrical engineering production, investment, exports, and localisation.
Uzbekistan’s President has signed Resolution No. PP-325 on 12 September 2026, introducing tax and financial incentives to attract major investors and support domestic manufacturers of electrical engineering products.
Resolution No. PP-325 establishes a comprehensive tax, financial, and institutional framework designed to elevate the national electrical engineering sector into a modern, high-value industrial ecosystem.
The main measures of Resolution No. PP-325 are summarised below:
Excise duty exemption for polyethylene granules
Electrical engineering manufacturers are fully exempt from excise tax on imported polyethylene granules used for their own operational needs. The exemption applies until 1 January 2028.
Extension of existing tax benefits
The existing 50% reductions in corporate income tax and property tax for electrical engineering enterprises are extended until 1 January 2030. To qualify, revenue from electrical product sales must account for at least 80% of total reporting revenue.
Property tax relief for local suppliers
Domestic manufacturers supplying raw materials, components, and spare parts to electrical engineering enterprises will receive a 50% property tax reduction from 1 January 2027 to 1 January 2030. Suppliers must be registered on the Agency for Industrial Cooperation and Public Procurement’s Unified Electronic Platform and derive at least 50% of reporting revenue from these products. The relief excludes state-owned enterprises and entities with state ownership of 50% or more.
10-year tax holiday for major investors
Qualifying major international investors will receive a 10-year exemption from corporate income, property, and land taxes. Investors must be listed in the Forbes Global 2000 or have relevant international supply chains, invest at least USD 50 million, increase localised value addition by more than 40% within three years, and allocate at least 3% of annual profits to R&D. They will also have access to turnkey industrial facilities in Special Economic Zones.
Accelerated depreciation for new projects
Businesses launching new investment projects in the electrical engineering sector may use accelerated depreciation for production buildings and technological equipment for three years from the date the assets are commissioned.
Target development indicators by 2030
The resolution aims to expand Uzbekistan’s electrical engineering sector by 2030, targeting UZS 130 trillion in annual production, USD 5 billion in exports, USD 3 billion in investment, and 50,000 jobs. It also seeks to increase deep processing of copper into high-value products to 35% and raise the domestic share of electrical products in public procurement to 70%.
Working capital and raw material financing
From 1 October 2026, commercial banks will provide working capital loans of up to USD 5 million per company at 6% interest, or 4% if repaid within one year, with a three-month grace period.
The National Business Guarantee Company will guarantee up to 50% of loans, capped at UZS 20 billion, while interest compensation will be available for eligible projects in 2026–2028.
Companies buying copper through exchange auctions will pay 25% upfront, with Uzsanoatexport covering up to 75%, subject to a USD 3 million limit per company, with repayment deferred for 90 days at 6% interest.
Subsidies for component localisation
Manufacturers that establish domestic production of components or spare parts not previously made in Uzbekistan can receive a one-time annual subsidy of up to 30% of equipment costs, capped at UZS 10 billion. The subsidy will be financed by the State Target Fund for the Development of Industrial Cooperation.
Institutional R&D and startup ecosystem
The resolution provides for a Centre for the Fourth Industrial Revolution to support digital CAD/CAM/CAE design, additive prototyping, ISO 50001 energy audits, and reverse engineering. From 2027, the National Venture Fund UzVC will co-invest with private or foreign venture funds in at least 10 electrical engineering startups annually, supported by a 10 billion soum budget allocation.
