Government Increases Fines Tenfold for Illegal Precious Metal Trade
President Shavkat Mirziyoyev has recently signed a new law that is set to bring significant changes to the jewelry industry in Uzbekistan. The aim of the law is to promote the development of the industry by providing greater flexibility to jewelers in purchasing metals and selling semi-finished products.
The law reintroduces tax exemptions for individual entrepreneurs who are members of the “Uzbekzargarsanoati” association and are involved in jewelry production. These exemptions include relief from personal income tax, social tax, as well as land and property taxes on production premises. These benefits will be in effect until September 1, 2027.
One of the major changes brought by the new law is the permission for refining companies to sell precious metals to jewelry producers in volumes and forms that suit their needs. Additionally, these companies are now allowed to manufacture and sell commemorative coins made of precious metals.
Furthermore, jewelers are now authorized to sell semi-finished products and blanks to other manufacturers. However, they are required to adhere to set prices based on the morning fixing rates on the London Bullion Market, as determined by the Central Bank’s exchange rate.
On the other hand, the law also introduces stricter penalties for violations related to the legislation concerning precious metals, such as illegal circulation, improper assay, and hallmarking practices. Fines for these violations will now range from 30 to 50 basic calculation units (BCUs), a significant increase from the previous range of 3 to 5 BCUs.
The law was passed by the Legislative Chamber of the Oliy Majlis in December 2024 and approved by the Senate in March. During Senate discussions, the issue of illegal circulation of precious metals and gemstones was highlighted as one of the industry’s most urgent challenges.
Overall, the new law is expected to provide a boost to the jewelry industry in Uzbekistan by offering greater flexibility to jewelers in their operations and by implementing stricter measures to regulate the market and prevent illegal practices.
