Tashkent, Uzbekistan (UzDaily.com) -- Presidential Decree “On additional measures to improve the welfare of the population of the Republic of Karakalpakstan through the accelerated development of entrepreneurship, innovative technologies and infrastructures” was adopted.

The following main directions for the accelerated development of the region have been identified:

improving the investment and business environment in the region, ensuring youth employment;

increasing agricultural production and creating a favorable environment for agribusiness through the efficient use of land and water resources;

creation of additional opportunities in the field of education and conditions for raising to a new level of human capital development;

expanding the coverage of social protection programs.

From 1 January  2023 to 1 January 2028 for business entities located in all districts of Karakalpakstan:

reduced by 50% tax rates for taxes on income, turnover, property and land tax from legal entities;

social tax is set at 1%;

the social tax paid by individual entrepreneurs is reduced by 12 times for persons operating in cities, by 6 times for persons operating in districts, and is set at a single rate of basic estimated value per year.

At the same time, these benefits do not apply to large taxpayers, permanent institutions, budgetary organizations and state-owned enterprises, legal entities with a state share in the authorized capital (capital) of 50% or more.

From 1 October 2022 to 1 January 2028:

70% of transportation costs for the export of products, including the transportation of purchased raw materials throughout the republic for the production of exported products, are covered by the Export Promotion Agency on the basis of the list established by the Government Commission;

a guarantee of up to 75% of the amount of the allocated loan, the total amount of which does not exceed 2.5 billion soums, will be provided at the expense of the State Fund for Entrepreneurship Support.

Borrowed funds to young entrepreneurs for the purchase of equipment necessary for the production and provision of services, based on the decision of the Government Commission directly through the Young Entrepreneurs Support Fund, will be provided for a period of 7 years.

In addition, a credit line is allocated to commercial banks for the development of entrepreneurial activities and the organization of work on financing within the framework of the project “Creation of small reservoirs in the Amudarya delta. Phase II” at the expense of the Fund for Reconstruction and Development in the equivalent of US$100 million.

Commercial banks provide loans for projects in the field of production and provision of services in the amount of up to 10 billion soums at a rate of 14% per annum for up to 7 years, including a grace period of up to 2 years (with the exception of projects in housing construction, trade, mediation, as well as manufacturers of excisable goods, state-owned enterprises and legal entities with a state share in the authorized capital (authorized capital) and replenishment of working capital).

The Ministry of Investments and Foreign Trade was instructed to create an "Investor Support Center", which provides free assistance to business entities located in Karakalpakstan and operating in this region. An industrial technopark will operate at the center, occupying at least 10 hectares of land on vacant land plots for non-agricultural purposes.

Also, as an exception, when selecting the best offer for the implementation of a large investment project with the aim of directly providing land plots for rent in the territory of Karakalpakstan from 15 September 2022 to 1 January  2025, the best offers will be considered, starting from US$5 million in equivalent.

The decree approved a list of mineral deposits and promising sites sold at auction in the Republic of Karakalpakstan in 2022-2023.

Land plots for non-agricultural purposes will be put up for electronic online auctions on the right of ownership with a reduction in the initial cost by 50%.

Funds from the sale of state assets located in Karakalpakstan (with the exception of real estate state property with an area of up to 10,000 sq. m), minus the cost of appraisal and sale, will be sent to the regional fund for the development of water supply and sanitation systems under the Ministry of Finance of Karakalpakstan.