UzA English

21.02.2018 17:25

Benefits for localization projects will be terminated

The effectiveness of tax and customs benefits provided for stimulating localization was considered at the meeting held by the President of the Republic of Uzbekistan Shavkat Mirziyoyev.

As a result of unreasonable collection of customs payments for certain types of goods, the price of products produced in Uzbekistan is higher than imported analogues. For example, equipment imported for the textile industry is exempt from all customs duties. However, the import of components for production of such equipment is subject to a 20 percent value-added tax.

The same inconsistencies are also observed for tax benefits. In this regard, from April 1, 2018, the benefits for localization projects will be terminated. Various unscrupulous enterprises will be deprived of the possibility of avoiding taxes through participation in the Localization Program. The program will include only projects that are really necessary for the economy, their implementation will be taken under strict control.

The President determined current tasks on eliminating existing deficiencies in the sphere, development of localization.

The ministries of economy and foreign trade were instructed to form a new, comprehensively elaborated Localization Program. Importance of introducing concrete proposals on abolition of customs payments for the import of certain components that cannot be localized at a competitive price was noted.

Instructions were given on organization of production of equipment for large enterprises and small business, wear parts, stamped products and small hydro generators.

The task was set up on establishing an Interdepartmental Working Group on organization of new localization capacities on the basis of a systemic analysis of the import volumes and structure, comprising of heads and responsible employees of the Ministry of Foreign Trade, the State Customs Committee, the Ministry of Finance, the Central Bank and economic associations.

Instructions were given on optimizing the rates of customs payments on certain goods for supporting domestic enterprises.

Our main goal is to ensure development of the country, the welfare of people, said Shavkat Mirziyoyev. To do this, first of all, our economy must be competitive, and products must be produced in our country. All leaders must draw appropriate conclusions and radically change their attitude towards the execution of the assigned tasks.

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