March 17, 2014
Uzbekistan plans to introduces amendments to Constitution.. 2
Uzbekistan attracts grants for US$200.1 million in 2013. 2
Support for Investors and Exporters. 2
Press-service of MFA of the Republic of Uzbekistan
POLICY
Uzbekistan plans to introduces amendments to Constitution
Uzbekistan is planning to introduce changes and amendments to some articles of the Constitution of the country.
Faction of political parties in Legislative Chamber of Oliy Majlis of Uzbekistan and MPs Group of Economic Movement of Uzbekistan considered the draft law “On introduction of changes and amendments to some articles of the Constitution of Uzbekistan (32, 78, 93, 98, 103 and 117)”.
In particular, the amendments introduced to the Constitution is directed at forming single system of ensuring parliament and public control over executive power, expanding rights of local representative bodies in the places, Adolat Party’s press service said.
The changes to the Constitution will set institute of public and citizen control, which is important to ensure effective feedback system with the government and determine mood of people and their relations to reforms in Uzbekistan, UzLiDeP said.
The draft law also introduces changes, which stipulate to transfer part of authorities of the President to Prime Minister, increase rights and obligations of the Cabinet of Ministers of Uzbekistan.
The document also will set democratic order of forming Central Election Commission and principles of its operation. This will be another step to strengthen constitutional rights of the citizens to be elected and elect.
(Source: Uzdaily.com)
economy
Uzbekistan attracts grants for US$200.1 million in 2013
Uzbekistan attracted 186 grants for US$200.1 million in 2013, according to data of Ministry of Finance of the country.
The Ministry said that Uzbekistan attracted 59 grants for US$55.9 million in healthcare, 17 grants for US$49.8 million in agriculture and water management, 42 grants for US$28.7 million in education and internship of specialists, purchase computer equipment and software development.
The country attracted three grants for US$15.7 million to equipment of customs bodies and border services, as well as equipment of defense complex.
One grant for US$12.4 million was attracted to improve water supply and sanitary in 2013, the ministry said.
Three grants for development of information-communication technologies for US$6.4 million were attracted in 2013, to develop economy, industry, financial market and entrepreneurship – four grants for US$1.8 million and to implement measures on energy saving and introduction of alternative sources of energy – three grants for US$1.5 million.
Uzbekistan attracted 6 grants for US$1.4 million to social welfare and five grants for US$15 million to equipment and institutional development of the state bodies, as well as 45 grants for US$25 million to projects in other directions.
(Source: Uzdaily.com)
Busness climate
Support for Investors and Exporters
The tax policy in Uzbekistan is considered by many experts as one of the main factors in the constant increase in the foreign investment flow in spearheading modern competitive industries, specializing in manufacture and export of quality products.
Statistics confirms this. In 2013, the foreign trade turnover increased by 9.4%, including the rise in exports by 10.9% and imports by 7.7%. The foreign trade surplus has reached US$1.3b. These figures are suggestive of enormous efforts undertaken to create unique conditions in the country for domestic and foreign investors, to support exporters, encourage modernization and technological re-equipment of production. A key factor is privileges and preferences that contribute to raising funds in the economy and thereby allow for a short time to create modern production, and therefore new jobs. A particular attention is paid to enterprises for export their own products, so not only are involved in the country for more foreign exchange, but also in the global market is moving the country’s image.
To stimulate and increase production to foreign markets, today a comprehensive system of tax benefits and preferences is created in the country. For example exports, except for specific categories, are not subject to excise tax. For exporting enterprises income and property tax rates down by the share of exports of goods and services in total production. For instance, if exports share is from 15% to 30%, the business entity receives a 30% reduction, while those with export proportion exceeding 30% are to have over 50% exemption. In the same amounts rate of single tax payment reduced for micro and small enterprises. In addition, they are exempt from mandatory sale of 50% of foreign currency earnings, coming from exports. Another additional incentive for the participation of enterprises in international economic relations is the abolition of export duties and export licensing products. All this complex of benefits enables enterprises to accumulate substantial foreign currency funds and direct them to boost and promote efficient production capacities.
Among the examples of the successful use of opportunities is the domestic textile industry. Today it concentrates not only a huge number of enterprises with foreign investment, but also manufactures,sending most of its products to other countries. Last year, the volume of exports by industry exceeded US$827.3m with a growth rate of 17.3% by 2012. Last year, the number of exporters increased 45-fold, reaching 252, discovered five new markets of Tunisia, Nigeria, Kenya, Sri Lanka and Estonia. Products of the textile industry are now available in48 states. This was made possible also thanks to extended benefits. In particular, enterprises exporting at least 80% of its finished products, as well as over 60% of semi-finished goods from the total volume of production, released before the end of 2015 from paying property tax.
Much attention is paid to enterprises with foreign investment engaged in export-import operations. For example, companies that specialize in the manufacture of products in a number of industries are exempted from payment of tax on corporate income, property, for the improvement and development of social infrastructure, the single tax and mandatory contributions to the National Road Fund. It is worth noting that it is imperative that the investor must send at least 50% of the income derived from the benefits given to the further development of the company.
In Uzbekistan, today there are several criteria for receipt of these preferences. Thus, the benefits apply to investors, who invested in the country’s economy a certain amount of funds from 300,000 US dollars to 3m dollars for three years, from US$3m to US$10m – for five years, more than US$10m – for seven years. At that, the share of foreign participants in the authorized capital of a company shall be not less than 33%, and production facility located in every city and village of the country, except Tashkent city and Tashkent region.
(Source: “Uzbekistan Today” newspaper)