The founders of the new joint venture were the Uzbek company Uzavtosanoat and the French automaker Peugeot Citroen Automobiles S.A., which ranks second in Europe in terms of vehicle production. The partners reached an agreement on establishing the JV back in spring, fixing the authorized capital at an amount corresponding to 29.3 million euros. This project provides for organizing the production of light commercial vehicles in Uzbekistan, with the total investment estimated at 133.3 million euros.
By this resolution, the new enterprise, as well as its suppliers and subcontractors, were granted an extensive set of benefits and preferences designed to ensure the most comfortable conditions for the construction of a light commercial vehicle plant on the territory of the Jizzakh FEZ. In particular, during the construction period and then for ten years from the start of production, supplies of equipment, components, and spare parts will be exempt from customs duties and VAT.
In addition, for a ten-year period counted from the date of the plant's commissioning, UzPCA LLC receives exemption from all taxes in force in the republic, as well as from mandatory contributions to the Republican Road Fund under the Cabinet of Ministers of Uzbekistan.
The VAT exemption also applies to official dealers of UzPCA LLC. Repair and service work for light commercial vehicles, including the cost of installed spare parts, assemblies, units, and materials, as well as the sale of these components through the branded retail network, will be carried out without charging VAT.
