Uzbekistan: President announces new initiatives and preferences for entrepreneurs


TASHKENT — Uzbekistan President Shavkat Mirziyoyev on August 22 held an open dialogue with the country’s entrepreneurs.

The President first reviewed the work carried out since last year’s meeting, the president’s official website reported. In particular, as a result of improving the business environment over the past year, the entrepreneurs built more than 55,000 business buildings. The number of business entities with revenues of over $1 million increased by 5,000 to 26,000. Another thousand entities brought their trade turnover from $1 million to $10 million, and the revenue of 220 enterprises reached $100 million. The number of exporting enterprises amounted to 7.5 thousand. The total volume of exports increased by 30%.

The President has outlined five main areas and put forward many initiatives for each of them.

First, to introduce separate approaches to supporting enterprises by dividing them into categories.

In particular, the enterprises with an annual turnover of up to 1 billion Uzbek soums shall be classified as micro-businesses, up to 10 billion Uzbek soums – as small businesses, up to 100 billion Uzbek soums – as medium-sized businesses.

Based on this, from January 1, 2023, a single tax rate of 4% shall be introduced for the micro businesses instead of the current turnover tax rates of 4% to 25%.

The enterprises with an annual turnover of more than 1 billion Uzbek soums and switching to the general tax payment procedure shall pay 2 times less income tax for one year. These opportunities shall facilitate the activities of 370,000 entrepreneurs.

During the last year’s open dialogue, the President promised to continue the course towards reducing the tax burden on businesses. Despite the economic difficulties caused by the pandemic, a reduction in the value-added tax rate to 12% from January 1, 2023, has been announced.

Second, creating a favorable system of financing. To this end, 20 trillion Uzbek soums shall be allocated for the small business projects. In addition, the commercial banks shall attract funds from the international financial organizations for these purposes.

The Entrepreneurship Fund’s opportunities to provide guarantees shall be doubled. As a result, at least 15,000 entrepreneurs will be able to resolve the issue of collateral for loans.

Third, the issue of introducing special approaches for a business based on the conditions of districts and cities was considered. Starting next year, all districts and cities shall be divided into 5 categories according to their conditions. They shall define the special regimes for taxation, subsidies, compensation for interest on loans, providing guarantees, as well as connecting to the infrastructure.

Fourth, concerning the protection of entrepreneurs’ property, it was emphasized that only the court could cancel decisions on the allocation of land and property, as well as consider the issue of seizure of property during the investigation.

Fifth, the issues of control over the activities of entrepreneurs and bringing them to the justice were discussed.

First of all, a moratorium shall be announced for 3 years on the introduction of new types of liability and penalties against the entrepreneurs. From next year the duplicating control functions of 26 state agencies would be canceled.

In order to implement all the proposals made during the open dialogue, it was instructed to establish a Public Council for Entrepreneurship Support under the President.