Over the past seven years, entrepreneurship has been a priority area of Uzbekistan’s policy. It is enough to see what attention the state pays to this direction. Benefits are introduced, loans are allocated, comprehensive support is provided to all categories of business – from small to large. It’s no secret that the development of the country’s economy as a whole directly depends on the development of business in the country.
In turn, the main annual event in Uzbekistan that determines the further ways of business development is the meetings of President Shavkat Mirziyoyev with entrepreneurs in the format of an open dialogue. These events allow business representatives to share their suggestions and opinions, which will definitely be heard.
This year, during an open dialogue with entrepreneurs held on August 18, the President of Uzbekistan proposed a number of initiatives formed on the basis of received proposals and aimed at improving the business environment in the country.
New opportunities for small businesses
A holistic ecosystem will be created to support and develop small businesses. To do this, “Kishlok Kurilish Bank” will be transformed into a “Business Development Bank”. Its activities, working methods, and financing mechanisms will be completely new. In particular, a small business center will be created at the bank in each region.
The centers will facilitate the development of initiators’ business projects, train entrepreneurs who want to implement a new project at their own expense, attract the right specialists to them, provide accounting, tax, audit, marketing, legal and other consulting services. Financing of projects of entrepreneurs trained in small business centers in the regions will also be arranged on the most favorable terms.
With the assistance of small business centers, cooperative ties will be established between project initiators and large state-owned enterprises. At the same time, the centers will assist new enterprises in introducing modern technologies, improving the skills of employees and selling products.
Medium-sized businesses are the guarantor of sustainable economic growth
In his speech, the President noted that currently the conditions for medium-sized businesses are not sufficient. Guarantees or compensation for commercial loans are provided only by the Entrepreneurship Fund, and then not for everyone. Therefore, new approaches will be established to support entrepreneurs who want to move from small to medium-sized businesses. Now the Entrepreneurship Fund will be responsible for providing financial assistance to projects in the field of services and services, “green” and energy-efficient projects, the Industrial Development Fund – for industrial projects.
These funds will not be limited to budgetary funds, they have been given the authority to independently attract investments. Thus, next year they will attract an additional $1 billion for medium-sized businesses.
In addition, an industrial mortgage system will be established, production sites will be built and transferred to entrepreneurs in the form of a “ready-made business”. In particular, at least 3 new industrial zones will be created in each region. In turn, in industrial zones where a production facility is launched, it is allowed to privatize land plots after fulfilling investment obligations.
At the same time, the fund also issues a guarantee for a loan in foreign currency for medium-sized businesses. The Fund will introduce a system of “mortgage services” in the fields of tourism, trade and service.
From now on, entrepreneurs will be offered ready-made projects of such facilities as a hotel, restaurant, shopping complex, parking lot, gas station, camping. Also, the fund allocates resources to entrepreneurs for the purchase of land for services, construction of buildings, structures and working capital.
Entering new markets
One of the great opportunities for expanding exports is attracting prestigious foreign brands to Uzbekistan. Thus, the 50 most popular brands in the world, whose annual market exceeds $ 100 billion, are very interested in cooperation with our enterprises.
According to the President’s instructions, the working group held talks with the largest brands in Spain, Germany, Poland, and Turkey. They are ready to place an order worth $3 billion to our local enterprises. To do this, it is proposed to solve 3 important issues that concern them.
Thus, international standards, environmental and certification requirements for production will be introduced, decent working conditions will be created, a favorable customs regime for the import and export of products of well-known brands will be introduced.
Increase in high-yield enterprises
With the involvement of international consultants, 140 ready-made projects have been developed in the fields of electrical engineering, production of building materials, textile, leather and footwear, jewelry, furniture, polymer, chemical and food industries. Their total cost is $ 10 billion, they provide for the creation of 60 thousand jobs, production of $ 5 billion a year and exports of $ 2.5 billion.
These 140 projects are placed on an electronic platform and offered to entrepreneurs on open and transparent terms. The enterprises included in the program will be allocated loans from the Industrial Development Fund with a low interest rate for a period of 10 years.
Tax administration will be simplified
In surveys, 70 percent of value-added tax payers stated that the tax deduction coefficient was unfairly applied when tax was refunded, that is, the “tax-gap” system. A large number of complaints about corruption in the tax system are connected with the “tax-gap”. Therefore, starting from October 1, when the value added tax is refunded, this practice will be canceled.
In addition, the Chamber of Commerce and Industry, the Business Ombudsman, together with representatives of the sphere, will introduce an open rating of entrepreneurs. At the same time, starting from January 1 next year, enterprises with a high rating will be exempt from all types of tax audits, they will be refunded the excess part of the value-added tax within one day, the practice of temporary suspension of the certificate of the value-added tax payer will be abolished.
It is no secret that at present, desk control has completely turned into a tax audit, which also opens the way for corruption. Now, with this procedure, it is strictly prohibited to request documents from an entrepreneur or to call him to the tax authorities.
The President also noted that at present, a financial fine is applied to an entrepreneur for one tax offense, and an administrative fine is applied to an individual. Now this practice will be abolished.
In general, fines applied to entrepreneurs should not be a reason for suspending their activities. From this point of view, all financial sanctions will be reviewed within three months, and their fair criteria will be determined.
Dilafruz Khusanova, expert
