01.11.2022

President Shavkat Mirziyoyev chaired a meeting to analyze the effectiveness of benefits provided to the economic sectors.

Sometimes people need help to start their businesses, while businesses or remote areas need resources to develop and enter the export markets. The state, providing such assistance, helps to create new jobs and increase the income of the population.

Several incentives have been introduced for this purpose in recent years. Their total volume amounted to 51 trillion Uzbek soums in 2021. As a result, 170,000 new business entities were established and more than 500,000 jobs were created last year.

Over the past six years, about 1,4 thousand benefits have been provided in the tax area alone.

The subsidies to support exports also yield results by helping entrepreneurs to enter foreign markets. Last year, 280 billion Uzbek soums of such subsidies were allocated, of which 220 billion were allocated to compensate for transport costs. As a result, 2,8 thousand enterprises entered the foreign market for the first time.

Moreover, exporting enterprises are compensated for part of the costs of international standardization and certification, insurance, and even advertising. As a result, for every soum provided to the electrical industry, there are 870 Uzbek soums of exports, 555 Uzbek soums in the textile industry, 273 Uzbek soums in the building materials industry.

In order to assist the entrepreneurs, a system of interest compensation and loan guarantees has been created. In order to reduce the credit burden, the Fund for Entrepreneurship Support has taken obligations for 6,100 trillion Uzbek soums, in the current year alone, compensation has been paid for 2,500 trillion Uzbek soums.

However, there are cases of ineffective or inappropriate use of benefits. Thus, out of 127 types of subsidies paid from the state budget, 15 are not used in practice.

The effectiveness of incentives varies across sectors and industries. For example, 33 Uzbek soums of added value are created for every 1 Uzbek soums of benefits in agriculture. This figure is 30 Uzbek soums in healthcare, 22 Uzbek soums in education, 16 Uzbek soums in information technology.

The instructions were given to increase the effectiveness of benefits at the meeting.

«In recent years, to give an impetus to the development of economic sectors, we had to introduce an unprecedented number of benefits. Today it is time to understand what it gave, what conclusions were drawn, as well as what experience was gained. It is necessary to arrange every soum allocated from the budget, to increase the effectiveness of benefits», Shavkat Mirziyoyev has said.

The Deputy Prime Minister and the Minister of Finance were instructed to determine the performance indicators of all benefits and subsidies, to introduce a system of strict control over their effective use.

The task was set to establish a Monitoring Department in the Accounts Chamber and conduct a continuous analysis of the effectiveness of benefits.

It is emphasized that it is necessary to inventory tax and customs benefits, cancel inefficient ones, and unify benefits for foreign and domestic investors.

31% of the country's tax benefits fall on the city of Tashkent. The share of the Republic of Karakalpakstan, Jizzakh, Khorezm and Surkhandarya regions does not exceed 2%. Along with this, the requirements, taxes, benefits, subsidies, compensations and preferences are the same for all regions, be it, for example, the Oltinsoy District of Surkhandarya Region or Mirabad District of the city of Tashkent.

Therefore, the President instructed to introduce a system according to which the tax benefits shall be provided based on the level of development of the regions.

«Now we need to go to places, make targeted decisions, put the most remote areas on the path of development, correctly using the benefits», the President said.

It is noted that it is necessary to raise the awareness of the population and entrepreneurs about this sphere, to expand the scale of the use of benefits. It was proposed to launch a single open portal for subsidies and gradually introduce in it the functionality to provide all existing benefits.