In December 2023, the Law “On the State Budget for 2024” was adopted and some taxes were changed in light of this new budget. Some other important developments included reforms in procedures for appealing court decisions, the establishment of the Fund for Industrial Development, the launch of the “140 Advanced Industrial Enterprises” program and the “industrial mortgage” scheme.
On 25 December 2023, the Law “On the State Budget for 2024” was adopted. It, among other things, provides the following indicators for 2024:
Law No ZRU-886 of 25 December 2023
Following the adoption of the state budget for 2024, as per established practice, a Law introducing changes to and determining the tax policy for 2024 has been adopted. Some key points of the Law are as follows:
Law No. ZRU-891 of 28 December 2023
The President has signed Laws introducing amendments to the Economic Procedural Code, the Civil Procedure Code, and the Code on Administrative Proceedings. The following changes have, among other things, been introduced:
- a relevant court decision affects the rights and obligations of persons not involved in the case;
- failure of a court to make a decision on any of the declared claims.
More detailed schemes of the old and new appeal procedures can be found here.
Law No. ZRU-887 of 25 December 2023
Law No. ZRU-888 of 25 December 2023
Law No. ZRU-889 of 25 December 2023
The President has signed a Decree on the establishment of the Fund for Industrial Development (FID) under the Fund for Reconstruction and Development (FRD). FID is expected to attract funds in the amount of USD 1 bln, including USD 200 mln from FRD. Its main goal is generally the financing and assistance with the implementation of projects aimed at manufacturing innovative, export-oriented and high-value products. FID will finance projects whose value exceeds USD 4 mln in the following ways:
Applications for financing shall be submitted through the National Industrial Portal of Uzbekistan and are considered by the Ministry for Investments, Industry, and Trade. Final decisions on financing are taken by a specialized governmental commission based on submissions of the Ministry.
Presidential Decree No. PP-397 of 18 December 2023
The Cabinet of Ministers has adopted a Resolution on measures for the implementation of the "140 Advanced Industrial Enterprises" program and the "industrial mortgage" support scheme.
The Program, monitored by the Ministry for Investments, Industry, and Trade, envisages holding an open competition to select 140 large investment projects for the creation of manufacturing enterprises across the following industries: electronics, textile, leather shoes, machine building, jewelry, construction materials, furniture, chemistry, and food. Projects shall meet the following criteria to qualify: (i) the creation of at least 100 jobs; (ii) the market share of imported products similar to those intended to be manufactured currently exceeds 50%; (iii) the use of modern manufacturing equipment. Preference is given to projects implemented in less developed regions as well as projects implemented based on cooperation with foreign brands. Preferential loans of FID of up to USD 10 mln will be available for projects selected to participate.
The “industrial mortgage” scheme became operational starting on 1 January 2024. It envisages the provision of preferential loans to potential investors for purchasing real estate for implementing manufacturing projects as to be secured by the purchased real estate. To support the scheme, the government will facilitate that land plots and production areas with all necessary permits being available (“ready-made business”) are put up for trades. Projects in the spheres falling under Class C of the National Classifier of Economic Activities of Uzbekistan (except for projects in alcohol and tobacco) are eligible to participate in the scheme (some other requirements apply).
Resolution of the Cabinet of Ministers No. 684 of 26 December 2023
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