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Peugeot Citroen Receives Unprecedented Benefits In Uzbekistan

Saturday, June 17, 2017 - 12:24

President Shavkat Mirziyoyev has approved the investment agreement concluded with Peugeot Citroen Automobiles S.A that provides for the establishment of production capacities in Uzbekistan for the assembly of French cars. As reported by local media, in accordance with this document, this project will be implemented in the territory of the special industrial zone “Djizak.” Its participants will receive a number of unprecedented customs and tax benefits. The joint venture UzPCA (Uzbekistan Peugeot Citroen Automotive) was established specifically for the construction of a new plant for the production of light commercial vehicles. With equal shares, it involved the Uzbek company Uzavtosanoat and the French Peugeot Citroen Automobiles S.A.

 

The authorized capital of the new joint venture will be 29.3 million euros, and the total cost of this project is 133.3 million euros.

 

For the period of construction of the new plant, as well as for the ten years from the date of its commissioning, the President of Uzbekistan has exempt UzPCA JV from paying all taxes in the territory of the republic, as well as mandatory payments to the Republican Road Fund. In addition, the producers of materials, components and technological equipment participating in the project are also exempt from corporate income tax and value added tax, as well as property tax on the fixed assets used for production.

 

During this period, the foreign staff of the JV will be exempt from paying personal income tax, and the foreign companies rendering services to UzPCA will be exempt from paying income tax on these services.

 

Starting in 2019, the new plant will annually produce up to 16,000 cars for exports and sales in the local market. The company's specialization will be the production of Peugeot and Citroen light vehicles intended for passengers and various cargoes within the full industrial cycle.



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