3 April 2020 2311

A package of economic measures. Main initiatives

Uzbekistan will strengthen its active support for the economy and social sector against the background of the negative consequences of the global spread of coronavirus. The relevant steps are defined in the Decree of the President of the Republic of Uzbekistan "On priority measures to mitigate the negative impact of the coronavirus pandemic and global crisis phenomena on economic sectors".

Major initiatives:

1. An anti-crisis Fund under the Ministry of Finance is being created in the amount of 10 trillion soums).Its funds will be used for measures to combat the spread of coronavirus infection, support entrepreneurship, employment, including the implementation of infrastructure projects, ensuring the sustainable functioning of economic sectors and expanding social support for the population.

2.The Republican Anti-Crisis Commission headed by the Prime Minister of the Republic of Uzbekistan is formed. It will quickly solve the problems that have arisen and prepare additional measures.

3. Increased social support for the population:

- from April 1, 2020, the number of recipients of benefits for families with children under the age of 14, for caring for a child up to the age of 2, and material assistance will increase by 10% — from 595.4 thousand to 655 thousand;

- a daily supplement is introduced — 6% of the monthly official salary-5482 medical, sanitary and epidemiological and other employees participating in measures to combat coronavirus. For example, doctors will receive an additional 160 thousand soums daily;

- 1.040 million employees of state educational, sports and cultural institutions that have suspended their activities will continue to receive their salaries in a timely manner;

- the system of issuing sick leave will be simplified;

- tax benefits and deferrals will be provided;

- it is proposed to exempt from paying taxes the income of individuals in the form of material benefits received from charitable organizations.

4. Support for working citizens:

- the preservation of jobs and the average monthly income of persons placed in quarantine is guaranteed;

- it is prohibited for employers to dismiss the parents of children infected with coronavirus infection or quarantined;

- leave is granted to parents of kindergarten students and primary school students during the quarantine period;

- temporary disability benefits in the amount of 100% of the average salary of the child will be received by parents placed in quarantine and persons caring for their child;

- it is allowed to transfer employees, especially pregnant women, the elderly, people with disabilities and chronic diseases, to the remote method, flexible working hours or work at home.

5. Food supply:

- the list and volumes of food for purchase and reserve formation will be determined;

- monitoring of the production of raw materials for the production of consumer goods is being introduced;

- monitoring of prices in the markets will be provided with strict control over the prevention of shortages and artificial overestimation of prices for socially important food products.

6. Support for the economy, especially entrepreneurship:

- a moratorium on tax audits until the end of the year;

- legal entities are granted a deferral of 6 months for the payment of taxes on property, land and for the use of water resources;

— from April 1 to October 1, the minimum amount of social tax for individual entrepreneurs is reduced from 100% to 50% BRV per month — from 223 to 111.5 thousand soums;

- the tax rate for the use of water resources for irrigation of farmland is reduced by 50% ;

- until October 1, the application of penalties to economic entities for overdue foreign trade receivables is suspended;

— from April 15 to October 15, the term of payment of property tax and land tax of individuals is extended;

— from April 1 to August 1, the deadline for submitting the declaration of income of individuals for 2019 is extended;

- from April 1 to July 1, the accrual of tourist (hotel) tax is suspended. ) collection

7. Export support:

— to prevent possible penalties against entrepreneurs, an official notification of the occurrence of force majeure will be published;

- entrepreneurs are allowed to export goods without securing a guarantee payment, if the overdue accounts receivable does not exceed 10% of the total annual export.

8. Support for financial stability:

- banks will provide the private sector with up to 30 trillion soums of revolving revolving loans to replenish working capital;

- until October 1, banks will give deferrals totaling 5 trillion soums for the payment of loans issued to tourist, hotel, transport and logistics companies, private educational organizations, catering enterprises and others that have faced financial difficulties;

- until June 1, 2020, commercial banks will undergo stress testing and assessment of the quality of their assets.

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