The import of equipment and spare parts is tax-exempt, producers pay no taxes on profits and investors with projects that fall under the central investment program receive tax relief and other benefits. In addition, companies in the Uzbek pharmaceutical industry are generally exempt from VAT for imported raw materials and for primary and intermediate products. The government in Uzbekistan is doing a great deal to keep the country's pharmaceutical industry on a growth trajectory.
According to a report by Germany Trade and Invest 2016, the value of pharmaceutical product manufacturing was 320 million US dollars, twice as much as in 2013. The funding program also includes the foundation of seven free economic zones, with a focus on the pharmaceutical industry. In these economic zones, companies benefit from far-reaching preferential conditions over a period of 30 years.
Investment in the millions:
The duration of tax, duty and customs relief depends on the amount of capital invested. As Germany Trade and Invest also reports, investments in the amount of 300 million US dollars flowed into the Uzbek pharmaceutical sector between 2007 and 2016; a good 100 million US dollars of it came from foreign investment. Uzbekistan's pharmaceutical industry now comprises about 150 manufacturers of pharmaceuticals and medical consumables.
Making contacts is very easy. Practically all drug manufacturers - including a whole series of joint ventures - operate under the umbrella of the state-owned industrial group Ozfarmsanoat.