Uzbekistan to exempt fruit and vegetable production from VAT
Baku, Azerbaijan, March 30
By Fikret Dolukhanov – Trend:
The fruit and vegetable production in Uzbekistan will be exempted from VAT beginning from April 1, 2018, upon the order of Uzbek President Shavkat Mirziyoyev “On additional measures on accelerated development of fruit and vegetable growing in Uzbekistan”.
Uzbekistan is currently widely implementing a cluster method, which provides for creation of continuous “seeds – fruit and vegetable production – purchase – storage – processing – entering the market” chain on basis of guaranteed contracts between agricultural manufacturers.
At least 1-2 fruit and vegetable clusters are to be created in every region of Uzbekistan in 2018. Beginning from 2019, the cluster method will be fully implemented in all regions of the country.
The manufacturers will be allowed to freely make decisions on sowing agricultural crops, determining their types in accordance with requirements of the internal and external markets, as well as with soil and climate conditions. They will also be able to hold talks with farm enterprises on purchase of agricultural production.
The production sold within the framework of a fruit and vegetable cluster won’t be subjected to VAT and compulsory deductions to the corresponding state funds.