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NEWS

Uzbekistan allocates additional funds to support domestic business

en.trend.az/
14 May 2020

The government of Uzbekistan has taken a number of new measures to provide support for local business and the population, following the COVID-19 outbreak, Trend reports citing the press service of the president.

In a recent online conference, the government discussed the ideas to further mitigate quarantine conditions and the resume of economic activity in the country.

The meeting touched upon the work done to combat the pandemic and support the population and businesses under quarantine conditions.

Previously, three trillion soum ($295.7 million) from the Anti-Crisis Fund were allocated for these purposes.

According to the decisions, new investment projects have been launched to sustain economic activity. In addition, 87,000 business entities and about two million citizens were provided with deferred bank loans for repayment at the cost of 18 trillion soum ($1.7 billion) and over five trillion soum ($492.9 million), respectively.

Last month alone, 250,000 entrepreneurs and enterprises, 83,000 farms received a delay of tax payments and other payments for a total of 400 billion soum ($39.4 million).

Over 11,000 entrepreneurs using state property have been exempted from paying rent. Also, some 10,000 of 14,000 industrial enterprises have resumed work. Some 178,000 employees resumed work.

The Ministry of Economic Development and Poverty Reduction was assigned to thoroughly study the problems of 4,000 idle industrial enterprises together with the regional mayors' offices and establish their activity till the end of May.

According to new instructions, the social tax rate for small businesses and farms will be reduced from 12 percent to one percent in the period from May through July 2020. As a result, more than 260,000 enterprises and farms will save a total of 650 billion soum ($64.1 million).

Representatives of small businesses and individual entrepreneurs will be exempt from land and property tax during the next three months. Due to this, over 50,000 entrepreneurs will save 300 billion soum ($29.5 million) and their working capital will increase.

Also, according to the previous decision, in April-May more than 1,000 entrepreneurs will be written off 80 billion soum ($7.8 million) worth of penalties, accrued for late land payment and property taxes.

In addition, entrepreneurs will be allowed to pay customs duties with a delay of up to 120 days. This will allow them to save 540 billion soum ($53.2 million) and direct these funds to develop their business.

Another 200 billion soum ($19.7 million) will be allocated from the budget for further support to low-income families, which will allow covering some 70,000 families.

While previously the state partially covered interest payments on investment loans with a rate of up to 22 percent, now interest payments on loans with a rate of up to 26 percent will be partially covered.

In addition, the amount of compensation on loans of up to 500 billion soum ($49.2 million, previously up to 10 billion soum -- $985,898) issued to entrepreneurs to replenish working capital will be increased from 5 to 10 percent.

Also in Tashkent, the practice of lending to the population for the construction and repair of individual housing will be applied in Andijan, Namangan and Ferghana regions. This will create about 10,000 seasonal jobs in the capital.