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NEWS

Package of Economic Measures. Main initiatives

www.uzdaily.com/en
19 March 2020

Uzbekistan will strengthen active support for the economy and social sector amid the negative effects of the global spread of coronavirus. The relevant steps are defined in the Decree of the President of the Republic of Uzbekistan “On priority measures to mitigate the negative impact on the economy of the coronavirus pandemic and global crisis”.

Key initiatives:

An Anti-Crisis Fund under the Ministry of Finance is being created in the amount of 10 trillion soums. Its funds will be directed to measures to combat the spread of coronavirus infection to support entrepreneurship and employment, including the implementation of infrastructure projects, ensuring the sustainable functioning of economic sectors and expanding social support for the population.

The Republican Anti-Crisis Commission is being formed, headed by the Prime Minister of the Republic of Uzbekistan. It will quickly solve the problems and prepare additional measures.

The social support of the population is increasing:

- from 1 April 2020, the size of recipients of benefits for families with children under the age of 14 and for child care until they reach 2 years and material assistance will increase by 10% - from 595.4 thousand to 655 thousand.

- a daily supplement is introduced - 6% of the monthly official salary - to 5482 medical, sanitary-epidemiological and other employees participating in activities to combat coronavirus. For example, doctors will daily receive an additional 160 thousand soums;

- 1,040 million employees of state educational, sports and cultural institutions that have suspended their activities will continue to receive salaries in a timely manner;

- The system for issuing sick leave will be simplified.

- tax exemptions and deferrals will be provided;

- It is proposed to exempt individuals from income taxes in the form of material benefits received from charitable organizations.

Support for working citizens:

- guaranteed the preservation of jobs and average monthly income of persons placed in quarantine;

- It is forbidden for employers to dismiss the parents of children infected with coronavirus infection or quarantined;

- quarantine leave is granted to parents of kindergarten pupils and primary school students;

- temporary disability benefits in the amount of 100% of the average salary will be received by quarantined parents and carers for their child;

- it is allowed to transfer to a remote method, flexible work schedule or work at home employees, especially pregnant women, the elderly, persons with disabilities and chronic diseases.

Food Supply:

- the list and volumes of food for procurement and reserve formation will be determined;

- monitoring of volumes of production of raw materials for the production of consumer goods is introduced;

- prices will be monitored in markets with tight control over avoiding shortages and artificially raising prices for socially significant food products.

Support for the economy, especially entrepreneurship:

- moratorium on tax audits by the end of the year;

- legal entities are given a 6-month delay in paying taxes on property, land and for the use of water resources;

- from 1 April to 1 October, the minimum amount of social tax for individual entrepreneurs decreases from 100% to 50% of monthly income - from 223 to 111.5 thousand soums;

- the tax rate for the use of water resources for irrigation of farmland is reduced by 50%;

- until 1 October, the application of penalties to business entities for overdue foreign trade receivables is suspended;

- from 15 April to 15 October, the deadline for the payment of property tax and land tax of individuals is extended;

- from 1 April to 1 August, the deadline for submitting a declaration of personal income for 2019 is extended;

- from 1 April to 1 October, the accrual of tourist (hotel) tax is suspended.

Export Support:

- in order to prevent possible penalties for entrepreneurs, an official notification of the occurrence of force majeure will be published;

- entrepreneurs are allowed to export goods without a guarantee payment if overdue receivables do not exceed 10% of total annual exports.

Financial Stability Support:

- banks will provide the private sector with up to 30 trillion soums of revolving loans to replenish working capital;

- Until 1 October, banks will give deferrals totaling 5 trillion soums on the repayment of loans issued to tourism, hotel, transport and logistics companies, private educational organizations, catering enterprises and others faced with financial difficulties;

- Until 1 June, 2020, commercial banks will undergo stress testing and assessing the quality of their assets.