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President: Small business and private enterprise should become solid basis for future development

Business Materials 8 December 2010 19:19 (UTC +04:00)
Uzbek President Islam Karimov announced 2011 as the Year of small business and entrepreneurship in Uzbekistan. Karimov announced this at the solemn ceremony dedicated to the 18th anniversary of the Constitution of Uzbekistan. The event was held at Uzbekistan International Forums Palace on Dec.7.
President: Small business and private enterprise should become solid basis for future development

Uzbekistan, Tashkent, Dec. 8 / Trend D.Azizov /

Uzbek President Islam Karimov announced 2011 as the Year of small business and entrepreneurship in Uzbekistan. Karimov announced this at the solemn ceremony dedicated to the 18th anniversary of the Constitution of Uzbekistan. The event was held at Uzbekistan International Forums Palace on Dec.7.

He said that small and private entrepreneurship plays important role in economy and hold special place in development of the country and society.

First of all, Karimov said, current legislation should re-considered critically in order to protect rights and interests of small business and private entrepreneur, provide them new opportunities for development in this sphere.

He said that barriers, erected by local officials to entrepreneurs, who want to create own business, should not be tolerated any more.

Karimov said that Uzbekistan conducted wide-scale work on decreasing interference of state and controlling bodies to financial-economic activity of enterprises and increasing economic rights and freedoms of businesses. But, low skills of some officials in controlling bodies negatively affect to works in this direction. Karimov said that there are also cases of corruption, bribery, extortion and abuse of power in some regions and districts.

"Next priority direction is to create more favourable climate for small businesses and private entrepreneurs," he said. "The works on simplification of registration procedures for small businesses, submitting reports to tax, financial and statistics bodies were carried out, but more should be done."

Other important issues are related with creating terms and preferences on tax and other payments for small and private businesses, Islam Karimov said.

He said that for last several years, tax burden for businesses was decreased from 13% in 2005 to 7%, or fell twice, and this expanded opportunities to development ofsmall businesses and private entrepreneurs.

Islam Karimov said this figure will be decreased from 7% to 6% in 2011, which will be another preference for businesses from the government.

"The government should limit with ongoing works and adopt practical measures on further improving system on providing mid-term and long-term loans to small businesses and private entrepreneurs to modernization and re-equipment of production and solving existing problems," he added.

Karimov said that the serious attention should be directed to solving issues of participating small and private businesses in foreigneconomic activity and their entrance to regional and global markets.

Uzbek head said that small and private businesses in Uzbekistan are mainly working in trade, services and communication, processing agriculture products. He said the country should create necessary opportunities for small and private businesses in industry sectors, organization of modern high-technological production in nano technologies, pharmaceuticals, ICT, use of alternative energy.

Currently, than 74 percent of the total employed population in Uzbekistan is engaged in small business and private enterprise. In 2010, 480,000 new jobs created in the country due to the development of this sphere of economy, more than 60 percent of them - in the countryside. The share of small business in GDP is expected to reach 53 percent by late 2010.

Beginning from 1997, every new year passes under certain name defining priority areas of development in Uzbekistan. It was reported that 2010 had been declared the Year of the harmonically developed generation.

The harmonically developed generation program approved by the President included the implementation of projects to strengthen the material-technical base of medical service, strengthening the material base of educational institutions, the development of modern information and communication technologies.

About eight trillion soums, including the expense of the state budget - 1.8 trillion soums, Uzbek banks' loans - 3.3 trillion soums and economic entities' own funds o- 2.7 trillion soums, was

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