S FOREIGN CONCESSIONS THE REASON FOR THE INCREASE IN FOREIGN DIRECT INVESTMENT IN UZBEKISTAN?

Abstract

Uzbekistan is the largest consumer market in the region with a population of more than 32 million, accounting for about half of Central Asia's population. Its convenient geographical location and proximity to the largest markets make Uzbekistan attractive to foreign investors. In the first years of Uzbekistan's independence the country's total exports more than 70% of raw materials when creating the increase and diversification of exports as a result of numerous reforms, Uzbekistan today, valueadded products exporting and exports 76% of completed and semi-finished products of the country has become. Over the past two decades, Uzbekistan's exports have increased more than 30-fold. The state has introduced a number of tax exemptions to support exporting companies and increase export volume. Exporters are exempt from SCT and the VAT rate is equal to “0”. In addition, the income tax, property tax and single tax base of exporting enterprises are calculated lower than others. In order to facilitate trade in the country, most of the customs duties and duties were either abolished or significantly reduced. This study was conducted around liberalization policies in order to show that foreign concessions increase foreign direct investment in Uzbekistan.