Uzbekistan introduces new measures to support population and economy

       Uzbekistan introduces new measures to support population and economy

1.  Population assistance

         The assignment of benefits to families with children, child care and material assistance, whose payment deadlines expire in March-June, is automatically extended. They don`t need to reapply.

         The Cabinet of Ministers is assigned to simplify the procedures for assessing the families liability to receive social benefits.

Expected result is an increase in the number of recipients of benefits by 123 thousand families.

Additional expenses (at the expense of the Anti-Crisis Fund) –about 600 billion sums.

         Lonely elderly and people with special needs will receive free disposable masks, antiseptics and antibacterial soap until quarantine ends.

The deadline for individual and individual entrepreneur loans to be paid in the next 6 months of 2020 will be prolonged. (4.7 billion sums).

2.  Support for the most affected industries

         The accrual of a fixed tax amount on personal income and social tax for individual entrepreneurs who are forced to suspend their activities is ceased.

         Tour operators, travel agents and hotel services entities, JSC “Uzbekistan Airports”, “Uzbekistan Airways” and State Unitary Enterprise “Center of Uzaeronavigation” are exempted from property and land taxes. The social tax rate has been reduced for them to 1%. More than 130 billion sums will remain at their disposal as a result of the measure.

Micro-firms and small enterprises, individual entrepreneurs, which have suspended their activities and (or) for which the amount of proceeds from the sale of goods (services) is reduced by more than 50 percent compared to the monthly average for the first quarter of this year, are provided an interest-free deferral (installment) for up to October 1 2020 with a notification of tax authorities:

         on sales tax, property tax, land tax, tax for the use of water resources with their subsequent payment in equal shares within 12 months, without application submission to local government bodies;

         social tax with its subsequent payment in equal installments within 6 months.

         The accrual and collection of rent for the use of state property by entrepreneurs who have temporarily ceased their activities is suspended.

3.  Taxpayers assistance

         Households with a turnover of up to 1 billion sums utilizing electronic invoices are transferred from monthly to quarterly VAT payments. As a result, they will increase working capital by approximately 150 billion sums.

As regards to unused production facilities and non-residential buildings, the application of increased rates of property and land taxes, interest accrual and compulsory debt collection on them are suspended. This measure will affect about 21 thousand enterprises).

         Funds received by business entities in the form of interest-free financial assistance will not be subject to income taxes and turnover.

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

4.  Other assistance measures

         The introduction of annual audits of LLCs and ALCs with a book value of assets of more than 100 thousand of the base estimate is postponed for next year.

         a moratorium on initiating bankruptcy procedures and declaring bankruptcy of enterprises faced with financial difficulties is introduced.

         The established increase in excise tax rates for the sale of gasoline, diesel fuel and gas to the final consumer, as well as for producers of alcohol and alcohol products, is canceled.

         Zero customs duty and excise tax are imposed on the import of primary goods - food products (meat, fish, flour, sugar, dairy products, vegetable oil, eggs, onions and others), as well as hygiene products.