Uzbekistan has declared that it will remove the excise tax on white sugar imports starting October 1. The tax deduction applies to imported white sugar without any flavoring or coloring additives. As reported by Daryo, the move aims to reduce expenses for both businesses and consumers.
The measures were addressed on April 18 during a video conference chaired by President Shavkat Mirziyoyev, focusing on efforts to mitigate the effects of global economic difficulties on the country’s sectors and industries.
During the meeting, the confectionery and soft drink industries were identified as key contributors to the domestic economy. To support these sectors, the government has decided to eliminate the excise duty on sugar and ease import restrictions on powdered milk.
The initiative will support approximately 5,500 businesses in the confectionery and beverage sectors, employing nearly 40,000 individuals. Together, these industries are projected to achieve an annual turnover of over 50 trillion UZS.
The discussion also touched on a system for partially refunding VAT to restaurants and bars. Since the beginning of the year, a cashback mechanism has been in place, enabling businesses to reclaim 20% to 40% of the tax paid. However, only 69 establishments have successfully utilized the benefit so far.
It is reported that cashback is not applied to over 200 products—such as drinks, cakes, and ice cream—when sold individually, even though VAT is paid on them. The State Tax Committee has been instructed to resolve these inconsistencies in the VAT refund system.
The president stated that entrepreneurs can now split the tax payments into two annual installments. Additionally, Officials have been directed to consult experts, scholars, and entrepreneurs via advisory councils to create effective proposals for improving tax and customs policies.
TRADE WORLD | Kenya and Ethiopia Sign Bilateral Agreement to Boost Trade
