Measures to support sustainable enterprise operations were discussed
Uzbekistan
President Shavkat Mirziyoyev reviewed a presentation on improving the sustainability of manufacturing enterprises and addressing the challenges facing entrepreneurs.
Our country is undertaking large-scale efforts to develop entrepreneurship, support investment projects, and create new production capacities. At the same time, fully utilizing existing industrial opportunities, ensuring the stable operation of existing enterprises, and increasing their production and export potential remains an important task.
The presentation reviewed the results of a study of enterprises that, for various reasons, are not operating at full capacity or have experienced reduced revenue. Such cases are primarily observed in the textile, construction, food, petrochemical, electrical engineering, and other industries.
It was noted that the operations of such enterprises are negatively impacted by factors and issues such as a lack of working capital, access to utility infrastructure, project delays, equipment deterioration, disruptions in raw material supply chains, and declining demand for products.
It has been estimated that by restoring production at enterprises and fully utilizing existing capacities, additional output and exports worth 65.6 trillion soums can be achieved.
In this regard, it has been decided to implement a new system that will involve an individual assessment of each enterprise's condition and the achievement of full capacity utilization. To this end, a National Headquarters will be established with the participation of relevant agencies and banks. Headquarters representatives will conduct on-site visits for two weeks to identify problems hindering enterprise operations and take on-site measures to address them.
For enterprises whose operations can be restored, banks and responsible agencies will work together to allocate the necessary loans, provide working capital, and address infrastructure and raw material issues.
The presentation will specifically address the issue of large assets held by commercial banks.
Currently, banks hold 70 assets worth over 10 billion soums. The objective is to develop a separate mechanism aimed at integrating these assets into the economy, identifying suitable investors, and creating production sites based on them.
The presentation also addressed the issue of accounting for and evaluating the performance of projects implemented under investment programs. It was noted that some enterprises launched in 2021-2025 as part of the implementation of nearly 17,000 projects are not fully reflecting their activities in tax and statistical reporting. Responsible officials have been instructed to analyze each project and ensure their proper taxation and accurate reflection in statistical reporting.
Some issues that negatively impact the business environment and raise concerns from the public and businesses were discussed, along with proposals for addressing them.
Specifically, the discussion focused on the placement of signs and brand marks by business entities, certain administrative requirements for food service and retail establishments, labor relations procedures, cashless payments, the application of tax incentives, financial penalties, as well as excessive documentation in foreign economic activity, and other issues.
For example, according to the current procedure, in some cases, signs displaying the name of the business, type of activity, or trademark are considered advertising, requiring the issuance of a separate certificate and the payment of appropriate fees. This not only creates an additional administrative burden for entrepreneurs but also impacts the recognition of retail and service establishments, customer flow, and revenue.
In this regard, it was proposed that information about the name of the business entity and type of activity posted on the building not be considered advertising, and that the practice of issuing such certificates be abolished. An initiative has been put forward to gradually introduce design requirements for the placement of advertising and other information signs, taking into account proposals from entrepreneurs, and to simplify the procedure for placing private trademarks on vehicles owned by legal entities.
It has also been proposed to simplify the procedure for refunding a portion of the value-added tax for catering establishments, and to ease procedures related to environmental assessments and compensation payments for certain retail, catering, and service providers. Furthermore, it has been proposed to specify certain procedures in labor relations between employers and employees.
Special attention has been given to digitalization and the expansion of cashless payments. Given that payments for a number of goods and services are increasingly moving to cashless forms, it has been noted that such payments need to be made as convenient as possible for individuals and businesses through the development of banking infrastructure, improved commission systems, and cashback.
It is proposed to introduce the ability to make commission-free money transfers between bank cards of the same individual, expand convenient forms of non-cash payments for the public, and create opportunities for prompt cashback payments on receipts in the catering, alcohol, tobacco, and fuel industries. It is also proposed to review the costs associated with the SMS notifications of the anti-fraud system, implemented to ensure the security of bank card transactions, and to consider using alternatives such as sending notifications to mobile apps or biometric identification.
In the area of tax administration and financial penalties, it is proposed to eliminate disputes arising from the application of tax benefits, and to introduce a rule stipulating that the penalty on tax arrears should not exceed the principal amount of the debt. Furthermore, it is proposed to prevent abuse of the receipt non-issuance notification system and to improve the procedure for suspending VAT payer certificates.
To simplify foreign economic activity, proposals were put forward to reduce duplicate documentation during the import process, create a more convenient process for entrepreneurs to open trading houses, branches, and representative offices abroad, and effectively utilize the Uzexpocentre's capabilities for the widespread promotion of national products in international markets.
The head of state emphasized the need to reduce unnecessary barriers to entrepreneurship, simplify control and regulation mechanisms, and transform digitalization processes from an additional burden on businesses, but rather into a tool that creates convenience and facilitates entrepreneurial activities.
Responsible officials have been given specific instructions on fully utilizing existing production capacities, financially rebuilding enterprises, increasing production and export volumes, creating new jobs, and expanding favorable conditions for entrepreneurs.
The presentation reviewed the results of a study of enterprises that, for various reasons, are not operating at full capacity or have experienced reduced revenue. Such cases are primarily observed in the textile, construction, food, petrochemical, electrical engineering, and other industries.
It was noted that the operations of such enterprises are negatively impacted by factors and issues such as a lack of working capital, access to utility infrastructure, project delays, equipment deterioration, disruptions in raw material supply chains, and declining demand for products.
It has been estimated that by restoring production at enterprises and fully utilizing existing capacities, additional output and exports worth 65.6 trillion soums can be achieved.
In this regard, it has been decided to implement a new system that will involve an individual assessment of each enterprise's condition and the achievement of full capacity utilization. To this end, a National Headquarters will be established with the participation of relevant agencies and banks. Headquarters representatives will conduct on-site visits for two weeks to identify problems hindering enterprise operations and take on-site measures to address them.
For enterprises whose operations can be restored, banks and responsible agencies will work together to allocate the necessary loans, provide working capital, and address infrastructure and raw material issues.
The presentation will specifically address the issue of large assets held by commercial banks.
Currently, banks hold 70 assets worth over 10 billion soums. The objective is to develop a separate mechanism aimed at integrating these assets into the economy, identifying suitable investors, and creating production sites based on them.
The presentation also addressed the issue of accounting for and evaluating the performance of projects implemented under investment programs. It was noted that some enterprises launched in 2021-2025 as part of the implementation of nearly 17,000 projects are not fully reflecting their activities in tax and statistical reporting. Responsible officials have been instructed to analyze each project and ensure their proper taxation and accurate reflection in statistical reporting.
Some issues that negatively impact the business environment and raise concerns from the public and businesses were discussed, along with proposals for addressing them.
Specifically, the discussion focused on the placement of signs and brand marks by business entities, certain administrative requirements for food service and retail establishments, labor relations procedures, cashless payments, the application of tax incentives, financial penalties, as well as excessive documentation in foreign economic activity, and other issues.
For example, according to the current procedure, in some cases, signs displaying the name of the business, type of activity, or trademark are considered advertising, requiring the issuance of a separate certificate and the payment of appropriate fees. This not only creates an additional administrative burden for entrepreneurs but also impacts the recognition of retail and service establishments, customer flow, and revenue.
In this regard, it was proposed that information about the name of the business entity and type of activity posted on the building not be considered advertising, and that the practice of issuing such certificates be abolished. An initiative has been put forward to gradually introduce design requirements for the placement of advertising and other information signs, taking into account proposals from entrepreneurs, and to simplify the procedure for placing private trademarks on vehicles owned by legal entities.
It has also been proposed to simplify the procedure for refunding a portion of the value-added tax for catering establishments, and to ease procedures related to environmental assessments and compensation payments for certain retail, catering, and service providers. Furthermore, it has been proposed to specify certain procedures in labor relations between employers and employees.
Special attention has been given to digitalization and the expansion of cashless payments. Given that payments for a number of goods and services are increasingly moving to cashless forms, it has been noted that such payments need to be made as convenient as possible for individuals and businesses through the development of banking infrastructure, improved commission systems, and cashback.
It is proposed to introduce the ability to make commission-free money transfers between bank cards of the same individual, expand convenient forms of non-cash payments for the public, and create opportunities for prompt cashback payments on receipts in the catering, alcohol, tobacco, and fuel industries. It is also proposed to review the costs associated with the SMS notifications of the anti-fraud system, implemented to ensure the security of bank card transactions, and to consider using alternatives such as sending notifications to mobile apps or biometric identification.
In the area of tax administration and financial penalties, it is proposed to eliminate disputes arising from the application of tax benefits, and to introduce a rule stipulating that the penalty on tax arrears should not exceed the principal amount of the debt. Furthermore, it is proposed to prevent abuse of the receipt non-issuance notification system and to improve the procedure for suspending VAT payer certificates.
To simplify foreign economic activity, proposals were put forward to reduce duplicate documentation during the import process, create a more convenient process for entrepreneurs to open trading houses, branches, and representative offices abroad, and effectively utilize the Uzexpocentre's capabilities for the widespread promotion of national products in international markets.
The head of state emphasized the need to reduce unnecessary barriers to entrepreneurship, simplify control and regulation mechanisms, and transform digitalization processes from an additional burden on businesses, but rather into a tool that creates convenience and facilitates entrepreneurial activities.
Responsible officials have been given specific instructions on fully utilizing existing production capacities, financially rebuilding enterprises, increasing production and export volumes, creating new jobs, and expanding favorable conditions for entrepreneurs.
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