Page 16 - Uzbek Outlook 2022

the people, and there will be no green territory, everything will turn into concrete."

The construction boom has also caused concern among the population, with the finger pointed at
officials for elements of the climate crisis observed in the country.

A sudden and severe dust storm struck and engulfed Tashkent and several regions on the evening of
November 4. Inhabitants claimed it resulted from “reforms” in the construction sector and a “massive
tree cutting campaign” initiated following these “reforms”.

According to the national statistical committee, cement production at Uzbekistan’s largest producers
reached around 8mn tonnes in the first eight months of 2021, marking an increase of 18.2% y/y,
while cement prices rose by 2.4% in 9M 2021, in part due to a 550,000-tonne rise in cement imports.

Meanwhile, Central Asia's largest cement plant Qiziliqumsement has invested $112m to add a fourth
production line.

The line will add 2.2mn tonnes/year of cement to output, bringing total output to 5.8mn tonnes/year, a
bit less than a third of Uzbekistan’s entire cement production.

According to plans, some 50,000 apartments will be commissioned next year under mortgage
programmes. Funds totalling $1.2bn will be allocated for this purpose.

5.0 Fiscal policy outlook

5.1 Budget revenues

State budget revenues in 2022 are projected to hit $18.58bn, or 23.8% of GDP (in 2021, $15.88bn, or
23.6% of GDP).

Value-added tax (VAT) is set to generate the lion’s share of revenue ($4.95bn); the profit tax share is to
comprise $4bn.

5.2 Tax

16 Uzbekistan Outlook 2022 www.intellinews.com