Uzbekistan aims to ensure stable provision of domestic market with cement
By Kamila Aliyeva
Uzbekistan takes measures for stable provision of the domestic market with cement.
Uzbek President Shavkat Mirziyoyev signed a resolution “On Additional Measures for Stable Provision of the Internal Market with Cement.”
The document emphasizes that the volume of cement production in Uzbekistan and the pricing mechanisms for it have a negative impact on ensuring the quality and timely completion of the construction of facilities.
In accordance with the document, monopoly enterprises will sell cement in the amount of 2 million tons under bilateral agreements with 100 percent prepayment at a price of 367,000 soums ($45.5) per ton (including VAT) to contractors who are building affordable housing for citizens in need of better housing conditions, objects of social sphere, transport infrastructure and water management facilities at the expense of centralized sources.
The head of Uzbekistan also increased the threshold for producers of cement, after which the revenue received is considered a super profit.
In particular, the amount of tax base for cement increased from 145,000 soums per ton up to 280,000 ($34.7) and clinker - from 120,000 to 260,000 soums ($32.2).
The Uzbek president gave the right to review the amount of the taxable base, based on the conjuncture of prices at exchange trades to the Cabinet of Ministers.
Earlier, Uzbekistan started the sale of cement at fixed prices to prevent speculation in the market.
There are five big cement facilities and several small ones with total capacity of 8.5 million tons in Uzbekistan. Qizilqumsement JSC with capacity of 3.1 million tons and Akhangarancement JSC with capacity of 1.7 million tons are the biggest of them.
Cement holds a significant share (76 percent) in the total volume of the construction materials production in Uzbekistan, according to Ozqurilishmateriallari JSC.
Uzbekistan exports cement to Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.
---
Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
Follow us on Twitter @AzerNewsAz