NEWS AND EVENTS
April 17, 2014
Presidential Decree provides measures for radical improvement of business environment
On April 7, 2014, President of Uzbekistan signed a Decree \"On additional measures to further improve the investment climate and business environment in the Republic of Uzbekistan\".
This document was adopted in order to further improve the business environment, create favorable investment climate, increase transparency of government and economic management bodies, to radical improve the conditions for doing business and to create new jobs in the private sector.
The Decree has approved the Program of additional measures to further improve the investment climate and business environment, raise the efficiency of stimulation of entrepreneurial activity for the years 2014-2015.
Thus, according to the Decree, starting from June 1, 2014, it is prohibited to apply to businesses the penalties for violations of legal and other acts of government and economic management bodies, local authorities, regulating the issues of relations with business entities, not published on their official website.
In addition, legal norms that may complicate doing business, lay new legal obligations on businesses, or introduce new measures of legal liability for businesses go into effect no earlier than three months from the date of publication.
Additionally, till January 1, 2017 it is prohibited to carry out tax audits of financial and economic activities of small businesses, that pay taxes and other obligatory payments in a timely manner, and those that show sustainable growth and profitability figures.
The Central Bank of Uzbekistan, commercial banks are instructed to abolish the practice of charging small businesses for bank services when paying taxes and other obligatory payments to the State Budget of the Republic of Uzbekistan .
This Decree establishes the procedure, according to which:
- freezing of operations of business entities in commercial banks in case of failure to submit tax, financial reporting and their absence at the stated address, is carried out by state tax authorities only on courtís decision;
- from 1 January 2015 small businesses submit statistical reporting on an annual basis with quarterly selective checks by statistical agencies in relevant areas and directions of activity.
The Decree also points out that in recent years a wide range of measures have been taken in Uzbekistan aimed at improving the business and investment climate, introduction of internationally accepted system of criteria for evaluating the business environment and achievement of higher international ratings.
Procedures of state registration of business entities, lending, examination of economic disputes, business liquidation have been significantly simplified and are now much less expensive. A lot of work has been done for wide implementation of One-window principle during registration of property, land allocation, construction permit issue, connection to electricity networks.
However, the current state of business environment and conditions in Uzbekistan do not fully meet the requirements and principles of the free market economy and international norms. There is still excessive business regulation, opportunities of contactless forms of interaction between government bodies and business entities are not used to the full extent. Measures taken to improve the environment for doing business are not being properly implemented on the ground.