Uzbekistan wants to bring the agricultural sector out of the shadows

Uzbekistan plans to bring the agricultural sector out of the shadow economy, making it transparent and comfortable for work. President of Uzbekistan Shavkat Mirziyoyev familiarized himself with measures to create a value chain in agriculture.

During the presentation, it was noted that, despite the increased efficiency of the agricultural sector, the share of the shadow economy in this sector remains significant: not all manufactured products are reflected in official statistics. Today, a VAT rate of 12% applies to the sale of food products.

This topic was raised during an open dialogue between the president and entrepreneurs. Then Shavkat Mirziyoyev instructed relevant departments to create more comfortable conditions for farmers and dehkans and reduce the tax burden.

As part of this, with the participation of the International Monetary Fund, as well as foreign and local experts, proposals were prepared to bring the agricultural sector out of the “shadow”.

According to the new initiatives, from January 1 next year, the VAT rate for farmers and dehkans when selling their own products will be set at 0%. The benefit applies to sold fruits, vegetables, meat, milk, eggs and other agricultural products, with the exception of cotton and grain.

At the same time, the practice of returning VAT paid on seeds, fertilizers, fuel, transport, electricity and other production costs will be maintained. This will allow farmers to additionally save about 300 billion soums annually and return another 400 billion soums due to the new benefit.

The measures taken are aimed at stimulating transparent work in the industry, creating conditions for increasing large industrial plantations and developing enterprises for processing agricultural products.

Responsible persons have been instructed to explain the new procedure to farmers and dehkans, ensure its effective application and intensify food production.

Tags: Uzbekistan, agricultural sector