Uzbekistan Plans to Restore Construction Equipment Incentives

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan is considering the reinstatement of incentives for the import of specialized construction machinery, along with adjustments to the taxation rules for land plots allocated to large-scale construction projects, according to the Minister of Construction and Housing and Communal Services Sherzod Khidoyatov.

Following a government meeting chaired by the president, Khidoyatov said the ministry is shifting toward closer engagement with entrepreneurs to address sector issues more efficiently and prepare policy proposals for the government.

He noted that one of the key challenges in the construction industry is the high level of wear and tear of equipment. In this context, authorities are discussing the restoration of previously existing import incentives for construction machinery, which, according to him, supported sector growth in 2017.

Attention is also being given to land taxation for construction sites. Currently, land tax begins to apply after two years regardless of project size.

A differentiated approach is being proposed: maintaining the current two-year period for projects up to 10,000 square meters, while extending it to three years for larger developments.

The ministry believes this would allow developers of large-scale projects to complete construction without additional tax pressure and redirect freed resources toward new developments.

Measures are also being discussed to strengthen construction quality control. In particular, it is proposed to increase the remuneration of technical supervision specialists. Their average monthly salary is currently around 5 million soums, and a threefold increase is under consideration.

The proposals follow a government meeting on April 14, where President Shavkat Mirziyoyev emphasized the need to reduce bureaucratic procedures in the construction sector and accelerate investment project implementation.