February 4, 2021

State Program for 2021

On February 3, 2021, the State Program for 2021 was adopted. Presidential decree was signed “On the state program for the implementation of the Action Strategy in five priority areas of development of the Republic of Uzbekistan in 2017-2021 in the” Year of Supporting Youth and Strengthening Public Health “. This program provides for economic recovery after the fall in 2020, namely, incentives for business, economic liberalization and support for domestic tourism.

BUSINESS SUPPORT

According to the adopted Program, business support is provided, in particular:

  • the grace period for the payment of land tax and property tax by entrepreneurs in the field of tourism, transport and public catering is extended until December 31, 2021;
  • the calculation of penalties on property tax and land tax is suspended, and compulsory collection of tax arrears is prohibited until December 31, 2021;
  • the amount of the interest-free deferral (installment plan) of the balance of property tax and land tax as of December 31, 2020, provided during the pandemic is extended until December 31, 2021;
  • the moratorium on tax audits of entrepreneurs who pay taxes and other mandatory payments on time is extended, with the gradual introduction of a “risk analysis” system to reduce the share of the shadow economy until December 31, 2021.

LIBERALIZATION AND ABOLITION OF THE MONOPOLY IN ENERGY SECTOR

In order to abolish the monopoly in the supply of electricity and natural gas, and to form market relations, the customs duty on the import of liquefied gas and the permits required for its import are canceled. It is envisaged that by June 1, 2021, a “Road Map” will be elaborated to create a wholesale market for manufacturers and importers by introducing market mechanisms in the field of supplying electricity and natural gas.

DOMESTIC TOURISM

It was established that from March 1, 2021 to June 1, 2022, as part of the popularization of domestic tourism in the manner determined by the Cabinet of Ministers, a mechanism is being introduced to reimburse part of the following travel expenses in Uzbekistan:

air carriers – in the amount of 25 percent of the air ticket cost for air traffic on domestic tourism destinations;

tour operators and travel agents – in the amount of 15 percent of the cost of air and railway tickets for tours organized for citizens and stateless persons permanently residing in the Republic of Uzbekistan, as well as in the amount of 10 percent of the cost of accommodation services (hotel services). At the same time, reimbursement of part of these costs is provided subject to at least one overnight stay in accommodation facilities located in the regions to which the trip was made.