Uzbekistan canceling preferences for investors

Institute for War and Peace Reporting (IWPR) reported on Sept. 18 that the global financial crisis has forced the Uzbekistan authorities to repeal tax preferences for investors.

As reported by Kabar news agency, on September 11 came into force amendments to the Tax Code, under which foreign investors operating in the oil and gas sector on the basis of production sharing agreements (PSAs) will have to pay taxes on income, land, water, single social payment as well as local businesses.

In addition, established an excise tax on hydrocarbons. These innovations are distributed to those investors, whose contracts do not provide specific tax rates and fees.

According to economist Jahangir Shosalimov, the crisis gradually covers the economy of Uzbekistan, the Republic is experiencing an acute shortage of currency, and the government seeks to equalize the situation by canceling privileges to foreign investors.

Previously, members paid a PSA budget of $ 9.35 from each cubic meter of gas produced, and now their contributions would amount to $ 68,4. Also, the royalty rate for foreign investors will be increased by a quarter.