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коридUzbekistan’s economic policy response to COVID-19 pandemicору «Китай –
Кыргызстан – Узбекистан»
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Uzbekistan’s economic policy response to COVID-19
Unprecedented measures are being taken on a global scale
to combat the spread of coronavirus infection, in particular by the
introduction of restrictions on the movement of people and the suspension of
This has caused a sharp decline in production and consumption in major
economies, disruption of global production chains and trade relations, lower
commodity prices and worsening global financial markets.
The economy of Uzbekistan is also affected by these factors, which requires
the adoption of effective proactive measures to mitigate their negative
impact. Particular attention should be paid to supporting and ensuring the
sustainability of such rapidly developing sectors of the republic’s economy
as tourism, transport, pharmaceutical and textile industries.
In order to ensure macroeconomic stability, uninterrupted operation of
industries and economic sectors, stimulate foreign economic activity,
provide effective social support to the population during the period of
counteracting the spread of coronavirus infection and other global risks,
and preventing a sharp decline in the country's population incomes.
• The Anti-Crisis Fund under the Ministry of Finance of the Republic of
Uzbekistan (hereinafter - Anti-Crisis Fund) was established in the amount of
10 trillion soums (~ 988.8 million US dollars). Its resources are used to
combat coronavirus infection, support entrepreneurship and employment,
including infrastructure projects, Ensuring the sustainable functioning of
economic sectors and increasing social support for the population.
• Furthermore, The Republican Anti-Crisis was established, and headed by the
Prime Minister. Commission promptly solves the problems and prepares
By the decree № 5969 "On priority measures to mitigate the negative impact
on the economy of the coronavirus pandemic and global crisis phenomena"
dated March 20, 2020, the President of Uzbekistan approved a package of
measures to mitigate the negative impact of the coronavirus pandemic and
global crisis on the economy.
General economic activities:
1. Attracting external borrowings up to 1 billion US dollars to support the
budget at the expense of soft loans from international financial
institutions and other sources in order to ensure financing of the State
Budget and the Anti-Crisis Fund.
2. Formation of additional infrastructure projects in the regions of the
republic, financed from the funds of the Anti-Crisis Fund and providing for
construction, reconstruction and repair- more than 3.6 trillion soum (~ 356
million US dollars).
3. The capitalization of the State Fund for the Support of Entrepreneurship
is increasing, taking into account the need to expand the volume of
provision of guarantees to business entities and compensation for covering
interest expenses on loans
1. From April 1 to October 1, 2020:
• For individual entrepreneurs, the minimum amount of social tax is reduced
to 50% of monthly income tax;
• The amount of deductions for wholesalers of alcoholic beverages is reduced
from 5% to 3%;
• Fees for the right to retail alcohol products for catering enterprises are
reduced by 25% of the established amounts.
2. From April 1 to July 1, 2020: the accrual and payment of tourist (hotel)
tax is suspended.
3. Tax rates for the use of water resources for the volumes used for
irrigation of agricultural land are reduced by 50% of the established rates.
4. The submission of a declaration on the total annual income of individuals
for 2019 is extended until August 1, 2020.
5. The deadline for payment of property tax and land tax of individuals is
extended until October 15, 2020.
6. From April 1, 2020: Incomes of individuals received in the form of
material benefits from charitable organizations are exempted from taxation.
7. During the time of antiviral measures it is recommended that Kengashes of
people's deputies of districts and cities to reduce by 30% the fixed amount
of personal income tax for individual entrepreneurs whose activities
directly or indirectly depend on the tourism sector.
8. An extension (installment plan) is granted to business entities for
payment of property tax, land tax and tax for the use of water resources
without interest (for 6 months).
9. Until October 1, 2020:
• The application of penalties to business entities for overdue receivables
from foreign trade operations is suspended;
• The accrual of interest on property tax, land tax and tax for the use of
water resources to business entities experiencing temporary difficulties is
suspended, and measures to enforce collection of tax debt are not taken.
10. Measures are being taken to expand the remote servicing of taxpayers to
fulfill tax obligations without visiting tax authorities.
11. Until January 1, 202: the tax audit of the activities of business
entities is paused , with the exception of a tax audit conducted in criminal
cases and in connection with the liquidation of a legal entity.
1. During the year 2020, entrepreneurs are allowed to:
• export of goods without guarantee payment with the existing overdue
receivables not exceeding 10% of the total export of goods for the reporting
• one-off operations for the import of technological equipment and raw
materials in exchange for the repayment of overdue receivables from foreign
2. From April 1, 2020: the mechanism of customs clearance of imported food
products is being introduced in an accelerated manner , including by issuing
permits before the goods arrive on the territory of the Republic of
3. Until October 1, 2020: the Republican Commission for the Development of
the Export Potential of Regions and Industries is granted the right to
independently make decisions on the provision of subsidies to compensate for
part of the transport costs of exporters from the funds allocated to the
Export Promotion Agency .
According to Presidential Decree № 5978 of April 3, 2020, was established
that from April 1 to December 31, 2020:
a) tour operators, travel agents and tourism entities providing hotel
services (accommodation services), «Uzbekistan Airways» JSC and its
structural divisions, «Uzbekistan Airports» JSC and «Uzairnavigation Center»
State Unitary Enterprise:
• exempt from paying land tax from legal entities and property tax of legal
• pay social tax at a reduced rate of 1 percent;
b) payers of value added tax, the turnover on the sale of goods (services)
of which does not exceed 1 billion soums (~ 98.8 thousand US dollars) per
month and using electronic invoices, has the right to calculate and pay
value added tax on a quarterly basis;
c) the procedure for applying increased property tax and land tax rates in
relation to unused production areas, non-residential buildings, including
those identified before April 1, 2020, as well as interest and penalties for
recovering debts arising from the application of increased rates, is
suspended on the specified taxes.
1. The calculation of a fixed amount of personal income tax and social tax
are suspended for individual entrepreneurs who have been forced to suspend
their activities for the period of quarantine measures, without having to
submit a certificate of state registration, with notification of suspension
of the activities of the state tax service through a personal taxpayer
2. Granted the right to interest-free deferment (installment plan) of taxes
for a period up to October 1, 2020 with notification of tax authorities to
micro-firms, small enterprises and individual entrepreneurs who have
suspended their activities and (or) whose revenue 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. By the Presidential Decree №5986
from April 27, 2020, the period for granting interest-free deferral
(installment plan) has been extended until December 31, 2020.
It is determined that until October 1, 2020, the State Fund for Supporting
the Development of Entrepreneurship provides:
• guarantee on loans issued to business entities with a positive credit
history for working capital replenishment, up to 75 percent inclusive of the
loan amount, but not more than 10 billion soums (~988.7 thousand US
dollars), regardless of the number of projects;
• compensation for interest expenses on loans issued to business entities in
national currency for working capital replenishment with an interest rate
not exceeding 1.75 times the basic rate of the Central Bank, while
maintaining the established compensation amounts.
It is determined that:
• a moratorium is introduced up to October 1, 2020 to initiate bankruptcy
procedures and declare bankruptcy of enterprises faced with financial
difficulties due to restrictive measures introduced to counter the spread of
• The deadline for conducting an audit at the end of 2019 for business
entities subject to a mandatory audit is extended until October 1, 2020;
• the accrual and collection of rental payments for the use of state
property by business entities that are forced to suspend their activities
for the period of the quarantine measures are suspended;
• income tax payers have the right to submit a certificate of the amount of
advance payments on income tax starting from the second quarter of 2020
based on the expected volume, with the abolition of the requirement of its
calculation based on the results of the previous quarter.
Presidential Decree №5996 "On Next Measures to Support the Population and
Entrepreneurship during the Coronavirus Pandemic" from May 18, 2020
From June 1 to September 1, 2020 small businesses, as well as markets and
shopping malls, cinemas, public catering, public transport, legal entities
carrying out activities for the carriage of passengers, are exempt from
paying property tax and land tax domestic services, the provision of
premises for rent, including for banquets, and sports and fitness
Small business will be provided with additional state support in the form of
write-offs of amounts:
• write-offs of property tax and land tax payable for April and May, for
which interest-free deferral (installment plan) was provided in accordance
with Presidential Decrees № 5969 of March 19 and №5978of April 3, 2020;
• write-offs of penalties and fines for land tax and property tax as of May
15, formed on January 1.
• the right to apply a deferral of payment of customs duty and excise tax
levied on the importation of goods, except for consumer goods, for a period
up to July 1 with subsequent payment deferred amount in equal installments
for 120 days.
• from May 1 to July 1 the social tax rate is reduced from 12% to 1%.
• the decree suspends the collection of debts on taxes, penalties and
accrued fines for violation of tax laws by micro-firms and small enterprises
as of May 15.
The decree instructed to provide additional state support in the form of the
provision by the State Fund for the Support of Entrepreneurial Activities of
compensation for covered interest expenses:
• for investment loans issued in national currency with an interest rate not
exceeding 1.75 times the basic rate of the Central Bank in the first year of
the loan agreement;
• on loans in the amount of up to 500 million soums (~ 49.5 thousand US
dollars), issued before October 1 in national currency for working capital
replenishment, in the amount of 10 percentage points for the duration of the