Association “Uztukimachiliksanoat” put up for approval on regulation.gov.uz (ID 20130) a draft Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On State Support for the Provision of the Agricultural Sector with Agricultural Machinery”.
The second paragraph of the Decree project notes that the Ministry of Economic Development and Poverty Reduction, the Ministry of Agriculture, the Ministry of Finance, the State Customs Committee, the State Tax Committee, the Uztukimachiliksanoat Industry Association, the cotton clusters of Indorama Agro LLC and Pahtakor Tex LLC, khokims Kashkadarya and Jizzakh regions under direct contracts in accordance with the list of the appendix:
– exempted from customs duties until December 31, 2021 (except for customs clearance fees);
– outlined proposals to defer payment of VAT for up to 270 days.
In accordance with Article 12 of the Law of the Republic of Uzbekistan “On Competition”, state and local government bodies are prohibited from giving preference to individual business entities when concluding contracts, or granting them unreasonable preferences, benefits and privileges.
In the Decree of the President of the Republic of Uzbekistan No. 3756 of May 31, 2018 “On measures to radically improve the procedure for granting benefits and preferences” in accordance with the legislation and acts of the President of the Republic of Uzbekistan, the need to provide tax and customs benefits and preferences, as well as temporary benefits for industries and regions in general, aimed at developing competition and ensuring the achievement of specific social, economic and financial programs is given for a period of not more than 3 years.
In accordance with the Decree of the President of the Republic of Uzbekistan No. 5185 dated September 8, 2017 “On Approval of the Concept of Administrative Reform in the Republic of Uzbekistan”, the establishment of restrictive measures for the creation of state commercial organizations and the reorganization of existing enterprises in areas where the private sector is effectively working also provides for the abandonment of the practice of providing exclusive rights, individual privileges and preferences to certain business entities, which limit the development of a healthy competitive environment.
The draft resolution was examined by the Committee. The opinion on the norms contradicting the requirements of the Law “On Competition” was sent to the “Uztukimachiliksanoat” Association. The Committee considers the adoption of the draft Government project as inappropriate.
Press office of the Antimonopoly Committee