Uzbekistan proposes tax breaks, grants to promote green greenhouse farming

Photo: The Press service of the President of Uzbekistan

BAKU, Azerbaijan, October 13. Uzbekistan has proposed tax breaks, grants of up to 100 million soums (about $8,414) and preferential loans of up to 300 million soums (around $25,242) to help households modernize greenhouses and adopt cleaner energy technologies, as part of a broader plan to develop environmentally friendly greenhouse farming.

This was announced by the press service of the Uzbek President following President Shavkat Mirziyoyev’s review of a report outlining the adoption of environmentally friendly technologies in greenhouse farming and measures to mitigate its environmental impact.

Under the proposed measures, household greenhouse operators would receive a 50% reduction in land and property taxes through 2030, an exemption from turnover tax, and compensation for half of the electricity costs incurred by energy-saving systems.

Furthermore, the loans of up to 150 million soums (approx. $12,621) would support the modernization of existing facilities.

Moreover, the government plans to establish environmentally friendly greenhouses for families in need across 50 mahallas, or local communities, specializing in greenhouse farming.

The presentation addressed the collection, treatment and reuse of contaminated drainage and filtration water generated by greenhouse operations. Authorities proposed establishing a specialized operator and developing the necessary infrastructure in the Akhangaran district.

The government is also seeking to expand modern greenhouse farming in regions with favorable climatic conditions. A total of 940 hectares has been allocated for the Surkhan-Agro free economic zone in the Sherabad district, where a master plan has been developed. The zone is expected to host greenhouses and agricultural logistics facilities, including the relocation of greenhouse operations currently held on banks' balance sheets.

Investors in the zone have been granted a zero land-rent rate for five years and three-year benefits on wastewater and groundwater-use charges. The government also proposed offering land plots at auction with starting prices set at 10% of their standard assessed value. For projects worth more than $10 million and businesses relocating greenhouses from Tashkent city and region, the proposed starting price would be reduced to 1%.

Additional proposals include five-year exemptions from land, property and profit taxes for zone participants, as well as customs-duty exemptions for imported greenhouse equipment.

Plans call for developing greenhouses and agricultural logistics facilities across 400 hectares, with completed projects subsequently offered to investors. Authorities have been tasked with allocating 220 billion soums (about $18.5 million) for infrastructure and 200 billion soums (around $16.8 million) to finance projects, while attracting $100 million in investment to the zone in 2027.

In addition, the bodies will prepare a digital map showing the locations of greenhouses, as well as the sources and volumes of energy supplied to them. Further measures will be developed to expand domestic and international markets for greenhouse produce.