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Uzbekistan fights with economic impact of coronavirus pandemic

Finance Materials 4 April 2020 12:00 (UTC +04:00)
Uzbekistan fights with economic impact of coronavirus pandemic

BAKU, Azerbaijan, Apr. 4

By Ilkin Seyfaddini – Trend:

Uzbekistan takes new measures to support its economy and population due to coronavirus pandemic, Trend reports citing the Uzbek media.

Benefits for families with children as well as childcare and material assistance deadline for payment of which ends from March through June 2020, are automatically extended, the report says.

The expected result is an increase in the number of beneficiaries by 123,000 families. Additional expenses, from the Anti-Crisis Fund, are about 600 billion soum ($62.1 million).

Single elderly and disabled people will additionally receive free disposable masks, medicines and antibacterial soap for the period of quarantine.

Extension of loans to individuals and individual entrepreneurs to be repaid in the next six months of 2020 (4.7 trillion soums that is - $487 million).

Property and tour operators, tour agents and entities providing hotel services, Uzbekistan Airports JSC, Uzbekistan Airways JSC and the State Unitary Enterprise Uzaeronavigation Center are exempted from paying property taxes, and social tax rate for them is reduced to one percent. As a result, over 130 billion soum ($13.4 million) will remain at their disposal.

Small enterprises and individual entrepreneurs that have suspended their activities and (or) whose proceeds from the sale of goods (services) are reduced by more than 50 percent, compared to the average monthly revenue for the first quarter of 2020 will be provided with interest-free deferment (installments) until October 1, 2020, on a notification basis of the tax authorities.

Business entities with turnover up to one billion soum ($103,621) per month, which are using electronic invoices are transferred from monthly to quarterly payment of VAT, which will allow them to increase monthly turnover (about 150 billion soum that is $15.5 million).

With regard to unused production areas and non-residential facilities, application of increased property tax and land tax rates is suspended, as well as penalties and forced collection of debts on them. This measure will cover about 21,000 enterprises.

The amount of mandatory prepayment by legal entities for gas and electricity is reduced from 100 to 30 percent, which will reduce the diversion of working capital.

Furthermore, established increase of excise tax rates for sales of gasoline, diesel fuel and gas to the end consumer, as well as for alcohol and alcoholic beverages producers will be abolished; zero rates of customs duty and excise tax on the import of important goods - food (meat, fish, flour, sugar, dairy products, vegetable oil, eggs, onions, etc.) and hygiene products will be established.

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Follow author on Twitter: @seyfaddini

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