PRESS OF UZBEKISTAN
March 30, 2017
UZBEKISTAN: MANUFACTURERS OF PHARMACEUTICAL PRODUCTS WILL BE PROVIDED WITH VARIOUS PREFERENCES AND BENEFITS
It is planned to release the companies that specialize in the production of medicines, medical products and auxiliary materials that are used in the production, from customs payments for imported equipment and raw materials by January 1, 2021.
In addition, the manufacturers will be exempt for the same period from value added tax and excise tax on imported raw and auxiliary materials. Small enterprises that operate in the sector will be provided with opportunity to increase the average annual number of employees to 200 people from April 1, 2017, without a corresponding change in the tax qualification.
Elimination of bureaucracy in relations with state agencies is another interesting point. Now, there is no longer the need for medical institutions to register the contracts for the purchase of imported counterparts of domestically produced medicines and medical products that are included on the list of socially important medicines and medical products.
The issue of, perhaps, the biggest concern of manufacturers, is likely to be tackled. Jointly with commercial banks, the Central Bank will ensure mandatory conversion of funds for the purchase of imported raw and auxiliary materials that are not produced in Uzbekistan, but used in the production of the most popular socially significant medicines and medical products, within 90 calendar days from the application date.
In recent years, Uzbekistan has taken a range of measures to develop domestic manufacture of medicines. Over the past seven years, the industry has disbursed $501.9 million of investments, including $135.6 million of direct foreign investments. 99 industrial facilities were put into operation.
To date, the share of domestic drugs in the total structure of domestic pharmaceutical market has exceeded 55%. Domestic enterprises produce more than 2,000 titles of medicines; the average level of their localization is 62%.
Meanwhile, according to experts' estimates, there are significant reserves for reducing imports of medicines and medical products through the localization of their production at domestic enterprises with a broad use of local raw materials.
(Source: «Uzbekistan Today» newspaper)