Uzbekistan's Rail Sector Faces Both Financial Boost and Setback

The financial landscape for freight transportation in Uzbekistan is undergoing a shift. Uzbek Railways has recently gained more flexibility in setting its own service charges, prompting the company to raise tariffs on two key tracks with increasing international importance. Meanwhile, the government is eliminating taxes on several rail-related services, The Caspian Post reports citing Rail Freight.

Not long after the government gave more freedom to Uzbek Railways to set its own prices in November 2024, the rail operator decided to raise prices on a number of rail tracks. For example, the company increased the tariff coefficient, which determines the price to be charged, for the Tashguzar - Boysun - Kumkurgan railway line from 0,7523 to 0,814. This is the railway that leads to the rail border crossing at Termiz, where more and more trains are finding their way into Afghanistan.

The coefficient on the Angren - Pap railway, which leads into the Ferghana valley and will be crucial in connecting the CKU line with the rest of Uzbekistan, will be set at 0,921, up from the previous 0,8512. When using both lines, a train’s charges will be determined using the higher coefficient of 0,921.

Zero tax rate

At the same time, the Uzbek government is cancelling taxes on a number of services that enable international trade. The provision of rail freight wagons and containers for use will be exempt from tax from the end of March, according to Kazakh media. Likewise, freight storage in forwarding warehouses, loading and unloading services, customs clearance and freight insurance will no longer be subject to tax by April.