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INDIA/UZBEKISTAN
retreading industry in India, he said; “New tyre prices continue on an upward trend and the vehicle base is rapidly expanding in the
country. Both are positive signs for the growth of tyre retreading in India.”
Uzbekistan Raises Taxes for Retreads and Casings
All retreaded tyres, casings, tread strips and some other rubber products will be subjected to an ecological fee in Uzbekistan from 1 January 2019, according to a draft decree proposed by Uzbekistan President Shavkat Mirziyoyev in late September.
If approved, the decree would obligate importers to pay a fee of $41.1 per each metric ton on all tyres and some rubber raw materials delivered to the country from next year.
Mirziyoyev seeks to tie the actual size of the ecological fee to the
minimum rate of labour payment, which is $22.5 per month in Uzbekistan in 2018. The anticipated increase in the wages in the country in the coming years should also lead to a rise in the ecological fee.
The ultimate goal of the project is to curb the negative impact of industrial waste on the health of the country’s citizens and in general to improve the ecological situation in Uzbekistan, the explanatory note to the decree stated. Like other countries in the Central Asian region, Uzbekistan faces certain problems in this field since numerous tyre dumps have been accumulated near all the major cities in the country.
The funds collected from the ecological fee must be directed to the National Environment and Waste Management Fund, according to the decree. This money is due to be spent on various environmental- protective measures, and in particular on establishing a waste collecting system in the country.
It is not clear yet, whether the government plans to subject tyre manufacturers and retreaders to the ecological fee as well as importers. During the public discussions of the project initiated by the Uzbekistan State Ecological Committee, it was proposed to introduce the new tax only for imported goods. However, the recently published draft decree stipulated that both importers and producers have to pay the new tax. The new decree could affect several retreading plants located in Uzbekistan, as well as the Bars tyre company. This Angren-based facility is designed to manufacture 3 million tyres per year, including those for the needs of the local GM Uzbekistan finished vehicle assembly plant, and reportedly exports new tyres for some $60 million per year. The introduction of the new fee could cost the company several millions of dollars in additional payments on taxes per year.
Local retreaders hope that there is ‘a simple typo’ in the decree and that the retreading industry would not
be subjected to the ecological fee. A source who wished to not be named described the attempts to justify the new taxation on retreaders with the fight for better ecology as ‘nonsense’.
He explained that the retreaders would not suffer any problems from the introduction of the ecological fee on casings, although ‘there is a clear shortage of casings in Uzbekistan these days’. Nevertheless, the new tax on retreading tyres could completely kill the margin in the industr y, which is already ver y far from perfect.
There are five companies registered as having retreading plants in Uzbekistan, although no information about their operations is available.
Continuing a tradition, Galgo once again participated in the International Cargo Transportation and Logistics Congress (Colfecar), which took place from October 3- 5, in Cartagena, Colombia. Returning this year to the city of its origin, the 43rd annual Colfecar remains one
of the most important and influential events for Colombia’s transportation industr y.
The event was very well attended by individuals in the retreading
industr y and included participants from the cities of Bogotá, Duitama, Ibagué, Barranquilla, Santa Marta, Cartagena, Cali, Eje Cafetero, Neiva, Pasto, Medellín, and Bucaramanga. Galgo representatives took the opportunity to network with numerous participants and gathered valuable feedback on the current marketplace, allowing them to gain a better understanding of current market needs.
Galgo demonstrated the wide array of treads they offer for each application, showcasing a variety of light, heavy and super wide tread designs. Products featured include their Super Single Trailer Wide (STW), Galgo Rounded Shoulder Light (GRL), All Position Regional Light (APL) and Deep Regional Drive (DRD), among others.