31 May 2022

What support will business receive in 12 northern districts of Karakalpakstan

Shavkat Mirziyoyev signed a resolution on supporting entrepreneurs working in the northern regions of Karakalpakstan.

The northern regions, according to the decree, include Bozatau, Karauzyak, Kegeyli, Kungrad, Kanlykul, Muynak, Nukus, Takhiatash, Takhtakupyr, Khodjeyli, Chimbay and Shumanai regions.

In this area, until January 1, 2027, a special procedure for the privatization of empty state-owned real estate is introduced:

  • buyers will be able to pay for objects in installments within 7 years, land plots for business or construction – for 5 years;
  • upon full payment of the price of the object within three months, the buyer will be provided with a 25% discount;
  • those wishing to open private kindergartens under PPP will be allocated buildings – with the possibility, after 3 years of operation, of privatization upon payment of 50% of the estimated cost.

In addition, until January 1, 2025, an experimental procedure will be in effect for transferring land that has come out of agricultural circulation to investors for reclamation. Plots for “E-auksion” will be handed over to the applicant who offered the maximum amount for rent.

After paying 50% of the amount agreed in the contract, the tenant will be able to sell the right to lease the plot to a third party or get a bank loan secured by this right. He will also be able to choose and place crops on these lands.

Enterprises engaged in the cultivation of agricultural products on these plots (except for clusters) will pay turnover tax, land and property taxes at rates 50% lower than the general ones.

In addition, under an investment agreement or a PPP agreement, the state budget compensates one-time part of the costs of putting land into circulation, including drilling artesian wells and building pumping stations.

By the end of 2024, it is planned to prepare a draft law, according to which the experiment with attracting investors to land reclamation will be expanded to other regions. We are talking about Surkhandarya, Kashkadarya, Bukhara, Navoi, Syrdarya and Jizzakh regions.

Residents of the above districts of Karakalpakstan are also compensated for up to 30% of the cost of purchasing components for the construction of wind and photoelectric power plants, as well as solar water heaters. The maximum amount is 3 million soums.

The Agency for Youth Affairs will monthly allocate subsidies up to 4 BCV (from June 1 – 1.2 million soums) to train young people from a given area in modern professions, entrepreneurship, IT and foreign languages.

In addition, the agency will provide up to 50 BCV (15 million soums) for the cost of renting premises for training centers that conduct classes in IT, science, sports, culture and art.