In the context of the increasingly severe global financial crisis and the shrinking market demand, the Uzbek government has made efforts to protect the interests of its export products, especially precious and non-ferrous metals, cotton, uranium, petroleum products and other business entities and investors, as well as Due to the macroeconomic growth, it has been decided to grant temporary preferential policies to enterprises exporting the above products in the next two years, as follows:
1. Depreciation discounts for export enterprises: low-standard payment of depreciation deductions. If the international market price is lower than the production cost, negotiate with the Ministry of Finance to suspend depreciation deductions for less than 6 months;
2. Value-added tax refund preferential treatment for export enterprises: The value-added tax refund period for export enterprises is shortened from 30 days to 20 days;
3. Preferential bank guarantee period: The period of bank guarantee for foreign trade cotton purchases issued by banks to textile enterprises is extended from 90 days to 120 days;
4. Preferential period for collecting foreign exchange: In 2009, the tax authorities extended the fine grace period from 30 days to 60 days for export foreign exchange receipts that are not paid on time;
5. Preferential loan interest rates: Commercial banks provide 12-month working capital to export enterprises at an interest rate no higher than 70% of the central bank’s re-lending rate (14%);
6. Price concessions: In 2009, the price increase of all energy carriers and public services will be limited to 6-8% to ensure the stable operation of export enterprises.
Analytical data shows that for every 12.5% decline in Uzbekistan’s lint exports, exports of food, chemical products and their products increased by 8.5% and 6.8% respectively. Export data for the first nine months of 2008 show that Uzbekistan’s exports of energy carriers, petroleum products, lint, and services exceeded US$10 billion. Export regions have also changed. Compared with the same period in 2007, the proportion of Uzbekistan’s exports to CIS countries dropped from 50.7% to 37.2%. More than two-thirds of consumers in the goods and services industry are from countries outside the CIS.
