Uzbekistan Announces Removal of Excise Tax on Sugar and Lifting of Powdered Milk Import Ban
Government Announces Abolishment of Sugar Excise Tax and Removal of Powdered Milk Import Restrictions
In a recent high-level government meeting focused on supporting local industry and entrepreneurship, it was revealed that the excise tax on sugar will be eliminated and restrictions on the import of powdered milk will be lifted.
The decision comes as a boost for the confectionery and soft drink sectors, which have already emerged as key drivers of domestic industry. By removing the excise duty on sugar and easing restrictions on powdered milk imports, the government aims to further support the growth of these industries.
Approximately 5,500 enterprises in the confectionery and beverage sectors, employing nearly 40,000 people, are expected to benefit from these changes. The combined annual turnover of these industries is projected to reach at least 50 trillion UZS.
The meeting also addressed challenges faced by the food service sector, specifically in terms of VAT payments. While a cashback mechanism was introduced earlier in the year to provide relief to restaurants and cafés, only a limited number of establishments have taken advantage of this benefit. The president instructed the Tax Committee to ensure a fair and transparent system for cashback, especially for products such as soft drinks, cakes, and ice cream.
Furthermore, concerns regarding land tax and lease fees were raised, with the president emphasizing the importance of considering the financial condition of entrepreneurs when determining tax obligations. Entrepreneurs will now be allowed to split these tax payments into two installments per year.
The meeting also highlighted the need for further reforms in the tax and customs systems. Qualified experts, scholars, and entrepreneurs will be engaged to develop proposals for advancing tax and customs policy and administration. Ministers were instructed to adhere to clearly defined authority when issuing guidelines and departmental documents.
In conclusion, the government’s efforts to support local industry and entrepreneurship through tax reforms and policy adjustments aim to promote growth and sustainability in key sectors. By addressing these challenges and implementing transparent and fair measures, the government aims to ensure the welfare and success of businesses and entrepreneurs in the country.
