Some of the most notable legal developments in Uzbekistan in February 2023 were the adoption of a Presidential Decree improving the tax policy and tax administration for business entities, the adoption of a new edition of the Law on Technical Regulation, measures to promote the use of renewable energy sources, and approval of an international agreement on preferential trade between Uzbekistan and Turkey.
The President has signed a Decree on improving the tax policy and tax administration in respect of business entities. For tax administration and other purposes, the Degree categorizes all business entities as follows:
Moreover, starting from 1 April 2023, the following will apply:
On 27 February 2023, a new edition of the Law “On Technical Regulation” was adopted. It enters into force on 29 August 2023 and, among other things, provides for the following:
- relevant responsibilities of manufacturers, sellers, and importers as well as the powers of involved state authorities are defined;
- the Uzbek Agency for Technical Regulation is designated as a regulator in the area;
- products, production processes, services, management systems, and personnel are identified as objects of assessment of conformity with technical regulations;
- systems of technical regulations are simplified and methodological guidance will now be issued for each regulation to clarify its requirements;
- confirmation of compliance with technical regulations may be mandatory or voluntary. Mandatory confirmation of compliance is done through the declaration of conformity or mandatory certification. Voluntary confirmation of compliance is done through voluntary certification;
- a warning is issued to natural and legal persons for violating technical regulations. If a relevant violation is not eliminated after the warning is issued, natural persons bear administrative responsibility, whereas legal entities may be subject to the following financial sanctions:
The President has signed a Resolution promoting the use of renewable energy sources (RES) and energy-saving technologies in 2023. The Resolution, among other things, envisages the following:
- it is planned that in 2023, (i) RES facilities with a total capacity of 4,300 MW will be commissioned; (ii) additional 5 bln kW/h of electric energy will be produced and 4.8 bln cubic meters of natural gas will be saved by using RES facilities and energy saving technologies;
- business entities and foreign investors are allowed:
- for business entities that have installed RES facilities, the volume of energy transmitted to the common grid and the volume of consumed energy will be accounted in the billing system of JSC ‘Regional Power Grids”. Settlement of due payments will be made monthly;
- the company “Yashil Energiya” will be established for the installation and maintenance of law-capacity RES facilities on buildings;
- the energy produced by RES installations with a capacity of 300 kW or more will be transmitted to the common power grid only after these installations are registered with the Ministry of Energy;
- starting from 1 March 2023, (i) a “green energy” financial product will be introduced to allow entrepreneurs to finance the purchase and installation of RES facilities; (ii) no technical conditions will have to be obtained to connect RES facilities to the common electric grid if such RES facilities’ capacity does not exceed the capacity indicated in technical specifications;
- the following documents for 2023 have, among others, been approved:
The President has signed a Resolution on approval of the international agreement on preferential trade between Uzbekistan and Turkey concluded on 29 March 2022. The agreement, among other things, provides for the elimination or decrease of customs duties for the trade in specific agricultural and industrial products.
Presidential Resolution No. PP-65 of 22 February 2022
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Kosta Legal Law Firm