Improving the status of Uzbekistan in the "DOING BUSINESS" rating and plans for 2020
The international rating of the World Bank and the International Finance Corporation “Doing Business”, which assesses the ease of doing business in countries and the simplicity of their procedures, differs from a number of other ratings. It covers the entire life cycle, from the starting point of the business activity-the registration process to its completion.
In this cycle, a business representative for its activities carries out the construction of the necessary object, connects to communication networks, sells its property, takes a loan for the development of activities, pays taxes and faces numerous other processes. In addition, the structure of this rating and its results at the international level indicate the business environment created in the country for domestic and foreign investors.
The international rating "Doing Business" is based on the results of ten indicators when determining the positions of countries. Also, the indicator "Public Procurement" is planned to be included in the number of indicators that will be evaluated starting from the next report "Doing Business — 2021".
In recent years, in order to create a favorable business environment in Uzbekistan, increase the attractiveness of the country for foreign investors, a number of regulatory and legal acts have been adopted, excessive barriers and procedures that hinder the free activity of entrepreneurs have been abolished.
As a result of the implemented reforms in Uzbekistan, the international rating "Doing Business" has improved by 18 positions over the past five years. According to the results of the latest report “Doing Business-2020”, the rating of Uzbekistan among 190 countries has changed from 76th to 69th place, thus achieving a positive shift of 7 positions.
The main factors for improving the rating of Uzbekistan in the latest annual report are the improvement of indicators in the following areas:
As a result, the legislation establishes the requirement for mandatory membership in joint-stock companies of an independent member of the Board and the presence of an audit committee, thereby strengthening the protection of minority shareholders.
The mechanism for stimulating the use of mediation in the enforcement of contracts of the pre-trial dispute resolution mechanism, which is widely used in international practice, is enshrined in law.
In the direction of simplifying international trade, the risk management system for customs and border control – “green corridor”, “yellow corridor”, “red corridor” - has been fully launched.
Despite the positive results achieved, there are shortcomings in some indicators, including obtaining construction permits, obtaining a loan, paying taxes, registering property, and consistently implementing reforms in resolving insolvency.
In this regard, in order to improve the effectiveness of the initiated reforms, eliminate the shortcomings and problems, the decree of the President of the Republic of Uzbekistan No. PP-4525 of November 20, 2019 “On measures to further improve the business environment and improve the business support system in the country” was adopted, and a number of measures were identified that should be implemented, in particular:
- creation of working groups in the central office of the responsible ministries and departments to bring the reforms carried out in the field to the performers on the ground;
- cancellation of the procedure for sending notifications by business entities about the beginning of construction and installation works;
- implementation of expenses in the process of connecting electrical equipment with a capacity of up to 140 kilowatts to electric networks at the expense of JSC " Regional Electric Networks;
- cancellation of the requirement to check the debt for utilities when notarizing contracts for the purchase and sale of real estate between business entities-legal entities at the request of one of the parties;
- introduction into practice of the system of return within 60 days of the part of the amount of the value added tax taken into account in the taxation system exceeding the amount of the value added tax calculated for the reporting period;
- electronic registration of permits and certificates required for export-import operations through the customs information system “One window."
Timely implementation of the above measures will have a positive impact on the results of Uzbekistan in the annual report “Doing Business – 2021”, improve the business environment in the country and serve to strengthen its position in the international arena.
The information is taken from the website of the Ministry of Finance : https://www.mf.uz/home/o-ministerstve/press-sluzhba/minfin-news/