- Value added tax rate has been reduced to 12 percent which was 20 percent
- 7 days VAT refund system has been introduced for exporters
- Important steps taken to liberalize foreign trade by abolishing custom duties
- Abolishing custom duties on more than 7 thousand types of raw materials and goods
- Administrative reform to reduce bureaucracy, eliminate corruption and introduce compact, efficient management in the executive branch of power
- The Ministry of Investment, Industry and Trade has set up a “Single Window”
- Nearly 100 thousand new enterprises created with a annual volume of attracted foreign investments reached $10 billion
- Uzbekistan is now focusing on green energy
- Sector controlled by State Owned Enterprises will be opened up for Private Sector investments
- 1000 enterprises with a state share and one thousand properties owned by the state will be put up for public auction
Tashkent, April 27 President of Uzbekistan Shavkat Mirziyoyev delivered a welcoming speech at the opening of the forum. While addressing the Inaugural session of the 2nd Investment Forum Uzbekistan President Shavkat emphasised that Uzbekistan has have intensively continued systemic reforms to further liberalize country’s economy, open a wide path for businesses, and strengthen the rule of law and legal guarantees and the most favourable fiscal system.
TIIF 2023 is a platform for Central Asian region, which allows presenting the investment potential of Uzbekistan to international investment and business communities and to attract big foreign investment, financial and economic organizations, and companies interested in integrating into the dynamically developing market of Uzbekistan. ТIIF-2023 is being attended by over 2,500 people from the US, UK, Türkiye, China, India, Egypt, EU, CIS, Southeast Asia, and Middle East countries.
Uzbekistan President talking on financial and tax reforms mentioned about reducing Value added tax rate 12 percent to 20 percent
Mentioning about the financial and Tax reforms the Uzbek President highlighted that 7 days VAT refund system has been introduced for exporters and the mutual accounting has been established in the tax and customs services while earlier they use get stranded between two separate systems. The dividends received from shares of foreign investors were exempted from taxation for a period of three years;
Uzbekistan President mentioned about important steps taken to liberalize foreign trade by abolishing custom duties on more than 7 thousand types of raw materials and goods needed by investors and introduced a simplified processing procedure in the customs territory. In order to bring the foreign trade and competitive environment to a new level, and gain access to new markets, Uzbekistan is making efforts to get the membership of World Trade Organization.
President emphasized for need to carry administrative reform to reduce bureaucracy, eliminate corruption and introduce compact, efficient management in the executive branch of power. The number of ministries have to been reduced to 28 which was around 61 and their responsibilities and powers were clearly defined. 500 functions of the state in business regulation were abolished, and 70 were transferred to the private sector on the basis of public-private partnership and outsourcing.
132 licenses and permits have been withdrawn, and notification procedures have been introduced for 33 of them and introduced an integrated investor engagement system has been introduced as part of the reform.
The Uzbek President while addressing the gathering informed that The Ministry of Investment, Industry and Trade has set up a “Single Window” to assist investors in all processes from project initiation to its launch which directly works under the President and he is personally addressing the issues of the investors and and establish direct communication with the Head of State.
President in this addressed emphasized on simplified the conditions for foreign investors to buy real estate, enter and leave Uzbekistan, as well as residence permit procedures with guaranteed judicial protection of investors’ rights and competencies of administrative courts were increased and they were given significant powers.
The important part of the reforms now is Uzbekistan going forward will be that state agency will need to prove the legality of its decision and setup mechanisms for enforcing the decisions of international arbitration courts in legislation.
Nearly 100 thousand new enterprises created with a annual volume of attracted foreign investments reached $10 billion which has increased threefold since 2017 with nearly nearly 1 million people have been lifted out of poverty, and the poverty rate has dropped from 17 to 14 percent.
President mentioned about the upcoming Constitutional Reform Referendum which is going to take place on 30th April across Uzbekistan which will focuss on providing strong legal framework and new Constitution specifically states Uzbekistan as a sovereign, democratic, law-governed, social, and civil state which would be based on the idea that “human rights and freedoms are the paramount priority”.
Uzbekistan is now focusing on green energy and is targeting to produce 2000 MW megawatts of capacity to be commissioned by end of 2023 and by 2023 targeting to achieve 8000 thousand megawatts give a opportunity of around 8 billion US dollars worth of opportunities for investors this sector.
Uzbekistan until now had sectors controlled by the state owned enterprises but now private investments are actively flowing into previously “closed” industries.
The areas which have been opened to private sector is the civil aviation sector by setting up five private airlines and inviting an external operator company to the Samarkand airport enabled us to increase the number of flights by 2.5 times.
With regards to transport sector the management of Andijan, Namangan, Bukhara and Urgench airports will be transferred to the private sector.
In general, this year, Uzbekistan will offer 14 billion US dollars worth dedicated programs in the field of public-private partnership have been developed with the support of international financial institutions to cover areas for state as transport, utilities and water management, public health and specific projects .
As a part of the reform, 1000 enterprises with a state share and one thousand properties owned by the state will be put up for public auction, – 40 enterprises of strategic importance for our economy will hold an IPO by offering shares of large gold and copper producing enterprises, telecommunication and insurance companies, as well as banks will be offered to investors.
Elevating industrial development to a new level by focusing on sector like textile, leather and footwear, construction materials, electrical, mechanical engineering industries have a sufficient base of raw materials and qualified personnel and increase the volume of their production and exports by 2 times.
and around 160 large and mutually beneficial projects would be offered for investments during the 2nd Editon of Investment Forum sessions.
Uzbekistan would play a important role in Central Asia and are actively working with neighboring states to further promote economic cooperation with many joint investment funds and carry out major regional projects in the fields of industry, energy, transport and water management.
Uzbekistan President highlighted some important projects like construction of “Kambarata HPP-1” and the “China-Kyrgyzstan-Uzbekistan” railway.
Uzbek President said that the forum will open new opportunities for all of us and discover unique business opportunities in the New Uzbekistan by providing desired peace and stability, a favorable investment environment and necessary guarantees. I guarantee it to you as President.