The resolution was adopted in order to improve import of wheat flour and create conditions for expansion of assortment of locally produced bread and confectionary products.
According to the resolution, the excise duty rate for import of flour was cut from 15% to 11% from customs cost of the goods.
In line with data of Kazakh side, Kazakhstan exported 1.216 million tonnes of flour to Uzbekistan in 2012. In the past period of 2013, the volume of exported flour from Kazakhstan to Uzbekistan made up 709,000 tonnes, which fell by 45% year-on-year.
High excise duties to flour resulted in outage of quarter of flour mills Kazakhstan as Uzbekistan accounts 75% of all wheat exports of Kazakhstan.