EurasiaNet Business & Economics - Uzbekistan: Entrepreneurs May Enjoy Tax Holiday

BUSINESS & ECONOMICS

UZBEKISTAN: ENTREPRENEURS MAY ENJOY TAX HOLIDAY
1/07/09

Small business owners in Uzbekistan could be exempt from paying income tax for five years, UzReport.com reported January 7.

The Finance Ministry, Economy Ministry and State Tax Committee of Uzbekistan have until the end of January to develop and approve new taxation plan to encourage small business development amid hard economic times, the report added.

Under a new presidential decree, income tax on larger entities will remain at 10 percent for 2009, commercial banks will pay 15 percent and "legal entities, engaged in auctions, the organization of mass events and having licenses to organize concert tours and concerts" will pay a rate of 35 percent.

In December, the Uzbek government opened credit lines worth $12 million to small businesses available through the National Bank of Uzbekistan for Foreign Economic Activity, Asaka Bank, Uzpromstroybank and Pakhta Bank. The banks were directed to lend to qualifying entrepreneurs at interest rates not exceeding 5 percent.

Small businesses contributed to 45.3 percent of Uzbekistan’s gross domestic product (GDP) during the first three quarters of 2008. The sector employs about 8.1 million people nationwide, according to the Uzbek State Statistics Committee.

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