This article is also available in:
Русский (Russian)
President Shavkat Mirziyoyev today announced numerous interesting proposals aimed at business development. There are so many of them that it’s easy to get lost. In this article, we will highlight five of the most significant measures that, in our opinion, will truly help entrepreneurs. These include increasing the threshold for criminal liability for tax arrears, supporting restaurateurs and the hotel industry, addressing issues with utilities, buying and owning land, as well as obtaining loans.
1. Tax Issues: Increasing the Threshold for Criminal Liability
One of the most significant steps was the decision to double the threshold amount of unpaid taxes that can serve as grounds for initiating criminal proceedings against an entrepreneur. Currently, this threshold is set at 300 times the base calculation amount (102 million soums).
This measure is aimed at reducing pressure on businesses and creating more favorable conditions for entrepreneurial activity. Increasing the threshold for criminal liability will help avoid excessive criminalization of economic relations and give entrepreneurs more opportunities to correct tax violations without the application of harsh measures.
2. Support for Restaurateurs and the Hotel Industry
Starting from January 1, 2025, catering businesses will be able to receive part of the VAT they have paid back in the form of a “cashback.” This innovation will significantly reduce the tax burden on the sector and stimulate its development.
Restaurants and cafes that switch to VAT payment will receive a double reduction in profit tax. This will allow them to direct the saved funds toward business development, improving service quality, and expanding their offerings. Moreover, from December 1, 2024, restaurants and cafes will be exempt from the requirement to provide documents when accounting for agricultural products purchased with cash, simplifying bookkeeping and reducing administrative burdens.
Hotels and tour operators are also not left out. From October 1, 2024, they will be able to receive 20% of the VAT they have paid back in the form of a “cashback.” This innovation will support the tourism sector, increase its competitiveness, and reduce market costs.
3. Utilities: Businesses Won’t Be Left Without Power
According to the new measures, entrepreneurs will no longer have to worry about their businesses being left without utilities due to debts or the freezing of their accounts. This innovation guarantees that even in times of financial difficulties, entrepreneurs can continue their operations and ensure comfortable conditions for their employees and customers.
4. Buying and Owning Land: New Rules and Opportunities
Starting from January 1, 2025, a unified classifier of land plots and capital construction objects will come into effect in Uzbekistan. This innovation will simplify the process of managing land resources and provide entrepreneurs with more flexibility and opportunities.
Thanks to the unified classifier, it will become easier to change the primary activity permitted on a specific land plot, allowing for quicker adaptation to market changes. Another important step was the decision to cancel VAT accrual when purchasing land at auction. This will significantly reduce the cost of acquiring land plots, which is especially important for small and medium-sized businesses.
Additionally, the possibility of phased payment for purchased land plots has been introduced. The installment periods will depend on the location of the land: up to 3 years in Tashkent and regional centers, up to 5 years in other areas, and up to 10 years in 4th and 5th category districts. This flexible payment system will allow entrepreneurs to plan their investments more effectively and reduce the financial burden in the early stages of project implementation.
Furthermore, to stimulate investment in business and reduce the financial burden on entrepreneurs, it was decided to cancel VAT accrual when purchasing land at auction. This measure will reduce the costs of acquiring land plots, which is especially important for small and medium-sized businesses.
5. Money for Small Business
As part of a new initiative, the amount of microloans for entrepreneurs will be tripled, reaching 300 million soums. This will significantly expand opportunities for financing business projects and stimulate entrepreneurial activity.
A particularly important innovation will be the removal of the collateral requirement for part of the loan up to 100 million soums. This will greatly simplify the process of obtaining a microloan for startup entrepreneurs and those who lack sufficient collateral. Now they will be able to secure financing based on their business ideas and development potential.
The text has been translated by AI. For more accurate information, please refer to the Russian version of the article.
