Abstract
Free economic zones (FEZs) have been used by many developing countries as a policy tool to promote industrialization and economic transformation. The free economic zones represents a new unilateral compromise between the state and market, while still contributing to economic globalization, by presenting itself as a complementary or as an alternative approach to integrate with the global market in addition to the international economic law instruments.
 This article considers general information and importance of tax benefits in the free economic zones in Uzbekistan which are becoming one of the most effective and promising forms of attracting investment for development of economic and scientific potential. Also, foreign experience on attracting investments and some proposals are given in this article.
Highlights
Free economic zones (FEZs) have been used by many developing countries as a policy tool to promote industrialization and economic transformation
Enterprises registered in FIEZ “Navoi” are exempt from the payment of customs duties for imported equipment and raw materials and components for the production of exports for the whole period of operation of the free industrial and economic zone
In order to manufacture products intended for sale in the domestic market of Uzbekistan, customs duties for goods imported into the country raw materials and component products, if legal documents are not provided other benefits, are charged at the rate of 50 % of the rates, with this time of payment may be extended to 180 days
Summary
Free economic zones (FEZs) have been used by many developing countries as a policy tool to promote industrialization and economic transformation. Participants in free economic zones are exempt from paying: land tax, income tax, property tax of legal entities, single tax payment for microfirms and small enterprises, as well as mandatory contributions to the Republican road fund and extrabudgetary Fund for the development of the material and technical base of educational and medical institutions under the Ministry of Finance of the Republic of Uzbekistan.
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