Mirziyoev held a meeting on the new tax system, which is introduced in 2019; Uzbekistan has received sovereign credit rating for the first time; Uztextileprom Association, Rieter AG discuss further strengthening of bilateral cooperation; Construction of a new cement plant starts in Uzbekistan; New cement plant opened in Karakalpakstan; Uzbekistan has completed the process of buying shares in the automobile factory in Asaka from GM; The rules for obtaining licenses for Duty Free stores have been changed in Uzbekistan; Import and production of unhealthy goods will be restricted to market.
Mirziyoev held a meeting on the new tax system, which is introduced in 2019
On December 20, 2018, President Shavkat Mirziyoyev chaired a video conference meeting on implementation of the new tax policy concept into practice. The concept adopted with the assistance of experts from the International Monetary Fund, the World Bank and other organizations based on the experience of developed countries provides extensive business opportunities and conditions that make its management as convenient as possible in accordance with international requirements.
Thus, starting from the coming year, the types of taxes are reduced from 19 to 15. The tax rate on corporate income is reduced from 14 to 12%, and the tax on profits in the form of dividends and interest – from 10 to 5%.
It is also important that henceforth tax rates will not change dramatically as it was before. Instead, they will become more predictable. This will allow investors to confidently plan long-term business projects.
Uzbekistan has received sovereign credit rating for the first time
The Fitch international rating agency assigned Uzbekistan a long-term “BB-” rating in local and foreign currency.
The forecast is stable and, as analysts emphasize, this is due to the low level of public debt and data on high economic growth, especially compared to other countries that are characterized by strong commodity dependence and high inflation.
In addition, the agency predicts economic growth from 5% to 5,3%. It will occur at the expense of state investments in strategic projects, as well as infrastructure and housing costs.
Uztextileprom Association, Rieter AG discuss further strengthening of bilateral cooperation
A meeting with the leadership of the Swiss company Rieter AG took place in the Association “Uztextileprom”. The delegation was led by Vice President Reto Tom.
During the meeting, the leadership of the Association noted the need to expand the localization of textile equipment, and proposed to consider the possibility of setting up technology exports to neighboring countries at an early stage.
The Swiss company has established itself as a reliable supplier of high-quality spinning equipment. The production facilities of Rieter Uzbekistan make it possible to produce a complete chain of equipment – from the processing of cotton fiber to the production of yarn.
Construction of a new cement plant starts in Uzbekistan
Construction of a cement plant started in Bulakbashi district of Andijan region of Uzbekistan.
Jo‘ydam Tamir Qurilish JSC and Chinese companies SHANGFENG, TUNLI and Beijing Triumph participate in the project. The parties created a joint venture SHANGFENG-BRIDGE OF FRIENDSHIP.
The cost of the first phase of the project (2018-2020) is $418,9 million. In the first stage, the capacity of the plant will be 1,2 million tons of cement per year. In 2020–2023, the second stage of the project, worth $215 million, will be implemented and the capacity will be increased to 3 million tons of cement per year.
New cement plant opened in Karakalpakstan
A new cement plant was put into operation in the Korauzyak district of Karakalpakstan.
The capacity of the plant will be 200.000 tons of cement per year. The Uzbek-Chinese joint venture Titan Cement has commissioned a plant.
The project cost is 302,4 billion soums or $37,8 million. The joint venture invested $19,2 million for the project and raised $16,8 million in loans, as well as $1,8 million in foreign investment.
Uzbekistan has completed the process of buying shares in the automobile factory in Asaka from GM
The process of buying an enterprise in Asaka was announced in May of this year. Then, the former head of Uzavtosanoat, Umidzhan Salimov, who now occupies the post of deputy chairman of the development and marketing board, said that the company, in accordance with the government’s decision, had already bought about 90% of the company’s shares.
At the same time, negotiations were held on the purchase of the GM Powertrain Uzbekistan automobile engine plant, where the Americans own over 70% of the shares. The process of buying this company is not yet complete.
It should be noted that the repurchase of shares of plants does not mean that GM is leaving Uzbekistan. The company remains in the republic on the terms of technical assistance. At the same time, the Uzbek side will be able to continue producing cars under the Chevrolet brand.
The rules for obtaining licenses for Duty Free stores have been changed in Uzbekistan
Now, those who wish to open such an outlet will not have to receive the conclusions of the state fire and sanitary inspection, and the list of necessary documents is also reduced.
In the near future, the licenses will begin to be issued in the form of an electronic document and sent to the licensee through the information system “License”. For this, the applicant must register in the unified identification system.
“Warehouses and duty-free shops, along with security and fire alarm systems, must be equipped with a round-the-clock video surveillance system. The systems are installed in places determined by the licensing authority and allow to view recordings from different sides for 3 months”.
Import and production of unhealthy goods will be restricted to market
In 2019, market mechanisms to stimulate the production and sale of healthy foods will be introduced. This is approved by a presidential decree of December 18.
The same mechanisms will limit the import, production and sale of foods with a high content of fats, salt and sugar. It is planned to limit the sizes of servings and packages in order to reduce the consumption of extra calories and the risk of obesity.
Another approved method is the layout of healthy food in stores in attractive surroundings and easily accessible places.