Constitution of Uzbekistan: economic reforms are aimed at justifying public trust

Uzbekistan has embarked on a comprehensive journey of economic reforms, focusing on sustainable development, entrepreneur support, private property protection, tax system overhaul, and the creation of a favorable business environment. Over the past seven years, the country has witnessed significant advancements in improving living standards, promoting social and economic liberalism, and embracing transparency. These reforms have resulted in radical transformations in villages and communities, contributing to the overall progress of society.

Transformative Economic Reforms

Uzbekistan’s economic landscape has witnessed substantial changes through the implementation of modern tax policy mechanisms, revision of the budgetary system, and streamlining of the monetary and credit systems. These large-scale reforms have not only opened up the country to the world but also showcased its immense potential. One of the most crucial steps in this process has been the liberalization of the foreign exchange market, addressing systemic issues and structural imbalances in the economy. The adoption of revised Tax and Budget Codes, along with 14 new laws and numerous amendments, has further accelerated economic development.

Stimulating Entrepreneurship through Reasonable Tax Policies

The ongoing economic reforms in Uzbekistan aim to create favorable conditions for business entities, stimulate economic activity, and strengthen the state’s economic power through tax improvements. Considerable efforts have been made in recent years to reduce the tax burden, provide tax benefits and preferences to businesses, and simplify tax administration. These measures have significantly alleviated the tax burden, allowing entrepreneurs to lower costs, increase investments, and expand their businesses. The reduced tax rates have also fostered entrepreneurship, as evidenced by the establishment of numerous small enterprises and micro-firms. Such initiatives have propelled entrepreneurship to the forefront of the economy.

Simplified Business Environment and Administrative Reforms

Simplification of the tax system and reduction of bureaucratic processes have made it easier to conduct business in Uzbekistan. Tax compliance costs have significantly decreased, while value-added tax rates have been reduced to 12 percent. Moreover, foreign investors have been granted exemptions from income tax on dividends received from shares, encouraging their involvement in the country. Transitioning from excessive administration to market-based methods of management has been a priority, resulting in the abolition of unnecessary government functions, the introduction of public-private partnerships and outsourcing, and the elimination of licenses and permits. These reforms have created a more favorable business environment and fostered free competition.

Banking System Reforms and Strengthening the Competitive Environment

Uzbekistan’s economic reforms include significant advancements in the banking sector. A national strategy for reforming the banking system has been adopted, laying the groundwork for the transformation of commercial banks. These reforms aim to strengthen the competitive environment and align with international standards. Prudential measures have been implemented to enhance capitalization, expand deposit bases, and increase commercial banks’ participation in promising investment projects. These reforms contribute to the stability of the banking system, risk management, and compliance with international requirements.

Enhanced Legal Framework for Entrepreneurs and Investors

To ensure equal conditions for entrepreneurs, Uzbekistan has introduced amendments to laws that focus on business development, administrative obstacle elimination, simplified licensing procedures, and empowering entrepreneurs in financial resource utilization. The protection of foreign entrepreneurs’ and investors’ rights has been strengthened through improved legal documents. Legislative changes have simplified real estate purchases, entry and exit procedures, and residence in Uzbekistan. The legal framework now prioritizes resolving ambiguities in favor of businesses in case of conflicts with state bodies. These measures have attracted significant foreign investment, tripling the volume of foreign investment compared to previous years.

Strengthening Property Rights and Economic Stability

Recent reforms in Uzbekistan have aimed to address legal gaps in property law and its protection, ensuring the stability and reliability of the business environment. The inviolability of property rights is crucial.

 

Sharofiddin Nazarov,
Chairman of the Committee of the Legislative Chamber
Oliy Majlis on the budget
and economic reforms
Doctor of Economic Sciences.

Published On: June 12, 2023Views: 75