January 31, 2014
Lower House Discusses Draft Laws. 2
President: GDP growth in 2014 expected at 8.1% level. 2
Information, Key to Success. 3
Press-service of MFA
POLICY
Lower House Discusses Draft Laws
The Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan convened for a regular session on January 29.
Following the approval of the session agenda proposed by the Kengash of the Legislative Chamber, the lawmakers deliberated on the bill “On Introduction of Amendments and Addenda to Some Legislative Acts of the Republic of Uzbekistan Due to the Further Consolidation of Judicial Protection for Entrepreneurship Entities”. The draft law is dedicated to the further development of the judiciary for the provision of more freedom for entrepreneurs and the protection of their legitimate rights and liberties. In order to prevent the violation of rights of corporate bodies and create additional guarantees for them, the bill envisages suspension of the execution of actions or decisions when the corporate entity under oversight submits complaint to the court. In general, the adoption of this draft law is to become another step forward on the way of reforms in the judicial system.
It was noted with regard to the draft law “On Introduction of Amendments and Addenda to Some Legislative Acts of the Republic of Uzbekistan” that the bill was elaborated with an aim to bring the norms of the acting legislation into line with the Law of the Republic of Uzbekistan “On Normative Acts” in new edition.
Notably, in accordance with Article 22 of the Law “On Normative Acts”, the law expertise should include the inspection of the compliance of the draft normative act with the Constitution and laws of the Republic of Uzbekistan and other normative acts wielding higher juridical force compared to it, as well as with the rules of legislative technique, the validity and reasonability of reference rules. During the law expertise of the draft normative acts, relevant bodies of the Ministry of Justice of the Republic of Uzbekistan conduct also their analysis to reveal provisions and norms in them that create loopholes for corruption and commitment of other breaches of the law in the system of government and management, along with those introducing excessive administrative and other restrictions for entrepreneurship entities that lead to the emergence of irrational expenses from entrepreneurs. To this end, the draft law envisages the introduction of amendments and addenda to Article 7 of the Law “On the Order of Preparations of Draft Laws and Their Introduction to the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan”.
In accordance with Article 23 of the Law “On Normative Acts”, when introducing the bill the initiator is obliged to prepare analytical comparative tables with reference to relevant provisions of international documents and legislations of foreign nations in consistent order, as well as legislative acts of the Republic of Uzbekistan, reasonable proposals on the validity of the application of appropriate international practice in conditions of the Republic of Uzbekistan. A draft law introduced without a comparative table containing a prepared detailed analysis of principles, provisions and proper language of international documents and legislations of foreign countries, fails to be considered. Deriving from that, relevant addenda are introduced into laws “On Regulations of the Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan” and “On the Order of Preparations of Draft Laws and Their Introduction to the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan”.
These and other norms of this bill, as parliamentarians point out, will serve for the further improvement in the lawmaking process and the creation of more effective mechanisms in the elaboration and elevation of quality of normative acts.
Also, other points in the agenda were discussed during the session of the Legislative Chamber. Due decisions were approved on all issues under consideration.
(Source: Information Service Legislative Chamber Oliy Majlis of the Republic of Uzbekistan)
economy
President: GDP growth in 2014 expected at 8.1% level
President of Uzbekistan Islam Karimov said at the session of the Cabinet of Ministers of Uzbekistan on 17 January 2014 outlined main tasks and priorities of economic development in 2014.
Uzbek leader said that Uzbekistan’s goals and tasks for 2014 are based on long-term programmes of the country and adopted strategies, directed at ensuring high growth of economy, mobilizing existing reserves and opportunities.
He said that the growth of gross domestic product (GDP) expected at the level of 8.1%, industrial output – 8.3%, agriculture production – 6%, retail trade – 13.9%, market services – 16.2%. Share of services in GDP will reach 55% in 2014.
He said that tax burden will decrease further, in particular, corporate income tax fell from 9% to 8% in 2013, while minimal rate of income tax cut from 8% to 7.5%.
This will help businesses to save over 130 billion soums (Currency rates of CB from 31.01.2014 1$=2203.49 soums), which can be directed to increase own turnover, modernization and technological renovation. It will help population to increase income by 90 billion soums, he said.
Uzbek leader recalled that the refinancing rate of the Central Bank of Uzbekistan was reduced from 12% APR to 10% APR from 1 January 2014.
(Source: Uzdaily.com)
BUSINESS CLIMATE
Information, Key to Success
During the first weeks of the new year, the State Tax Committee (STC) of Uzbekistan holds a number of major events dedicated to changes in tax policy. Hundreds of accountants, experts and professionals gather in pavilions of Uzexpocenter in order to learn the new rules and to discuss the prospects of the tax system.
The current tax system of Uzbekistan is an effective mechanism for stimulating the opening of new technological industries and the development of existing ones. This public institute stands on the cutting edge of information and communication technologies. Today, there are few state agencies that can compete with the tax authorities on the level, quality and breadth of online services. STC does not rest on its laurels, it is constantly looking for new areas for partnership with business and citizens through the Internet and mobile communications. For example, given the popularity and demand for various services provided through smartphones, the tax authorities have cooperated with domestic developers of mobile applications. As a result, a unique application Soliq appeared on Google Play. It provides users with 5 kinds of interactive services: the latest news and information related to the work of State Tax Committee, information about tax inspections. People have opportunity to find out their personal taxpayer identification number and tax debts. The number of services provided there will be expanded. The number of this application’s downloads has already exceeded 10 million, this fact demonstrates that the tax authorities selected the correct way for communication.
Participants of the workshops noted that a number of interesting changes in tax legislation entered into force this year. In particular, the minimum tax rate on personal income was reduced from 8% to 7.5%. This fact will allow the population to accumulate additional funds, and thus will indirectly promote the domestic demand for consumer goods which are largely produced by domestic enterprises.
Entrepreneurs were not forgotten. Tax rate on corporate income was reduced from 9 to 8%. The mandatory annual revaluations were abolished for micro and small enterprises. Henceforth it will be held only once in three years. Artisans whose products are known far beyond Uzbekistan also received significant support. The expiry date of the tax benefits on the fixed tax was prolonged until January1, 2017 for individual entrepreneurs and family businesses engaged in crafts and applied arts in their homes. The Government also gave support to the development of home-based work. Companies that are ordering goods, works and services from homeworkers are exempt until January 1, 2019 from the unified social payment in the amount which is equal to their orders.
Many benefits have been prolonged in order to support the real economy. Exemption from income tax, property tax, single tax payment for micro and small enterprises, compulsory contributions to the National Road Fund as well as customs duties were prolonged till January 1, 2016 for enterprises specializing in the production of non-food consumer goods.
The 50% reduction of the single tax payment for micro firms and small businesses specializing in the processing of meat and milk was extended for two more years in order to continue the stimulation of the production of food products in the country. However, the saving must be directed only on the modernization of the enterprises, on the creation of new ones, on buying new equipment for quality control laboratories or on the development of new products.
Foreign investors also got some new privileges. The JV MAN Auto – Uzbekistan created in partnership with the famous German MAN Truck & Bus Group was granted with a three years period of exemption from all taxes of the country, as well as with an exemption from the mandatory payments to the National Road Fund and customs duties. In addition, a significant list of benefits was extended to Korean Air which implements the project of creating the international logistics hub in Navoi airport.
(Source: “Uzbekistan Today” newspaper)
tourism
Discovering New Routes
Uzbekistan has always been of interest to foreign visitors. See incredible nature, capture the majestic mountain scenery on video or photo camera, taste the famous gardens gifts and keep in memories a genuine Uzbek hospitality! It is wonderful, isn’t it? For further improvement of the conditions of receiving guests from abroad a number of projects were planned within the Program for development of tourism in Tashkent region for 2013-2015.
Every year Uzbekistan attracts thousands of fans of the oriental culture and tourists from near and far abroad. Interest in the historical and cultural heritage of ancient civilization attracts them to the remotest corners of our country. For example, Parkent district of Tashkent region welcomes not only tourists, representatives of foreign companies engaged in agricultural business also visit this place in order to share the experiences and establish good partnerships. They visit the fields and gardens, chatting with farmers. Guests must be warmly welcomed and perfectly accommodated, and should be provided with transport. Especially important in this are road-transport and engineering-communication spheres. Projects on their development will be implemented in the near future. In particular, it is planned to expand the possibilities of moving from Khojikent railway station to the tourist zone, open new routes, to procure 253 passenger cars, and about 200 buses.
In the first place is the project of opening new tourist routes for wider familiarization of visitors with the historical and cultural heritage of the region. It should be added to this that 15 objects of historical and cultural heritage will be beautified, including the archaeological sites Shohruhiya, Honqa, complexes Saurtepa, Shodmalik-ota, and Sardoba-qaynar, places of pilgrimage Qirq qiz, Sormozor, and Parpi-ota in Oqqurgon and Ohangaron districts. In addition, reconstruction works will be carried out in several hotels at the tourist camp ‘Yangiobod’ in Angren, and recreation area ‘Sumcha’ in Parkent district, as well as built about 20 modern hotels.
For implementation of these projects it is projected to allocate more than 77.7 million dollars. Foreign investment will be attracted for the projects financing, as well as loans and grants of international organizations.
“Uzbekistan is one of the oldest places in the world,” says the deputy chairman of the O’zbekturizm National Company, Anvar Temirkhodjaev. “Age of many Uzbek cities reaches many centuries, which created a unique cultural identity, amazing traditions, and, of course, magnificent landscapes, mountains, grasslands and lakes. It is also a skiing, Heli-ski programs, and hiking along the rivers. By the way, we have good conditions for extreme water sports – rafting and kayaking. And all this is almost next – just a few hours away by bus from Tashkent to Sirdaryo, Angren, or more exciting and dangerous areas of Ugam, Chotqol, and Pskem rivers. All conditions are created here for recreation, and with every beginning year they are getting better, enthralling tourists with new interesting discoveries.
Of course, bright and unforgettable impressions give the tours to the Ugam-Chotqol Natural Park in Bostonliq, Parkent and Ohangaron districts, and to the Chotqol Biosphere Reserve, famous fish market, often called by tourists as ‘exhibition’ of fish and fish products, and to Chinoz district. More interesting and informative turn the tours from the capital to the districts of Tashkent region on weekends.
All this would be incomplete without the qualified tourism industry specialists, for increasing the number of whom we intend to create additional conditions. Thus, it is necessary significantly improve the material-technical base of the Bostonliq Professional College of Tourism that raises the level of education here. ”
(Source: “Uzbekistan Today” newspaper)