An increase in recycling fees for electric cars is expected to boost the development of the battery recycling and waste management industry, according to Inomjon Abdurakhmonov, head of the Foreign Trade Department at the Ministry of Investment, Industry and Trade (MIIT), who shared his thoughts on Facebook.
He highlighted that electric car batteries contain heavy metals that pose risks to human health. By 2035, Uzbekistan will accumulate over 10,000 tons of used batteries from electric cars.
The utilisation fee is one measure aimed at regulating foreign trade. It can protect the environment and the health of Uzbeks and contribute to the growth of domestic industries.
Uzbekistan currently imposes no import customs duty on electric cars. For comparison, India has a fee estimated at 125%, the European Union up to 55% and the Eurasian Economic Union (EAEU) up to 15%. Abdurakhmonov provided an example of the total costs for an electric car in Russia after all duties: the price there would be $29,600, while in Uzbekistan it would be $25,900.
He also discussed introducing incentives for electric car manufacturers in Uzbekistan, stating that this would reduce unemployment and foster the development of other sectors. Moreover, it could encourage competition among automakers and attract investments.
Abdurakhmonov stated that changes to duty rates do not contradict World Trade Organization (WTO) rules and regulations. He noted that other duties and charges are included in WTO agreements, and the utilisation fee falls within this framework.
A state applying for WTO accession can include these payments in its final package of obligations for joining the organisation.
He emphasises that opinions suggesting a focus on «protecting the interests of consumers» are unfounded regarding economic efficiency.
Abdurakhmonov reminded individuals that the Institute for Public Policy and Technology (IIPT) has a public council where bloggers and economists can voice their opinions.
Finally, it is important to note that starting in May, the rates for the utilisation fee on electric cars will significantly increase. This initiative has faced criticism from economist Otabek Bakirov, who labelled it as «hypocritical and harmful.»
Kursiv Uzbekistan also reports that the Ministry of Energy has denied claims regarding the shutdown of charging stations in Tashkent.
