What changes await Uzbeks from October 1?

Starting from October 1, a number of changes are to come into force in Uzbekistan. Some of them are amendments in the tax sphere, the abolition of auto-proxy between close relatives, the possibility of exchanging an old car for a new one, and so on.

The Ministry of Justice in the Republic of Uzbekistan has prepared an overview of these key legislative changes.

1. The notarization of self-authorization between close relatives is canceled

The procedure for the mandatory notarization of a power of attorney for the right to use and drive vehicles between close relatives (parents, husband (wife), children, brothers, sisters) of the vehicle owner specified in the compulsory civil liability insurance policy of the vehicle owner is canceled.

2. Migrant loans are granted to labor migrants.

Migrant workers are to be issued microloans for a period of one year within one working day. Interested individuals are to submit their application along with the passport information and application fee.

3. A new procedure is being introduced for reinsurers

Prior to transferring insurance liabilities for reinsurance to foreign insurance organizations, the reinsurer (reinsurance broker) is obliged to send reinsurance offers (proposals to conclude reinsurance agreements) in the amount of at least 50 percent of the transferred liabilities to insurance organizations.

4. Rise of excise tax on alcohol and tobacco products

The excise tax rate on alcoholic beverages rises by an average of 10 percent, and on tobacco products by 20 percent.

5. Other changes in the tax sphere:

From October 1, 2019:

- legal entities that sell gasoline, diesel fuel and gas through gas stations to their final consumers are value-added tax payers regardless of the amount of revenue from the sale of these goods;

- business entities importing goods are considered payers of value added tax

- with respect to the following, benefits are canceled when paying value added tax, including when importing:

- asbestos, coal, wood materials, wood and wood products, hydrocarbon raw materials;

- soya grains, sunflower and sesame seeds, raw butter and sugar raw materials;

- agricultural machinery, vehicles, components, materials and technological tools used in the manufacture of vehicles;

- source of payment received in the form of interest from funds of legal entities placed in commercial banks.

Also, the established value added tax benefits are canceled in relation to agricultural products of own production and food products produced in the Republic of Uzbekistan.

6. Some publishers are exempt from paying state fees for a license.

Publishers of children's literature, as well as products intended exclusively for disabled consumers, are exempted from paying the state fee for issuing a license for publishing.

7. Draft legislative acts are agreed and submitted electronically

Starting from October 1 and in the subsequent period draft laws of the Republic of Uzbekistan, acts of the President of the Republic of Uzbekistan and the Government of the Republic of Uzbekistan to the Cabinet of Ministers and the Administration of the President of the Republic of Uzbekistan are developed and agreed upon by the concerned ministries, departments, and executive authorities on the ground exclusively in electronic form via the Unified Electronic System

8. A single electronic database of executive documents will be maintained.

The Bureau of Compulsory Enforcement is to maintain a unified electronic database of executive documents that includes:

• all executive documents received by enforcement agencies;

• information on administrative fines imposed and collected by bodies (officials)

9. The tariff rates for workers at Mehribonlik houses are changing

The size of the base tariff rates of managers and educators with higher education at Mehribonlik houses, children's towns, as well as educators with higher education of all types of public education institutions are equal to the sizes of the base tariff rates of the corresponding directors and teachers of secondary schools with the cancellation of the allowance provided for educators state specialized educational institutions with in-depth study of individual subjects.

Also, a monthly allowance for special working conditions for official salaries of senior employees and educators of state specialized educational institutions for children with disabilities in physical or mental development is paid in the amount of 75 percent.

10. Free non-agricultural land will be provided through the E-IJRO AUKSION

Empty land not intended for agriculture of entrepreneurial and urban development activities will be provided in all regions of the republic only through an electronic online auction on the E-IJRO AUKSION trading floor.

Also, individuals and legal entities are given the right to make proposals on posting information about the land plot and the planned construction site in the YERELEKTRON automated information system.

In addition, the approval of materials for the selection of a land plot and (or) the issuance of opinions on it by authorized organizations will be carried out only in electronic form through the AIS "YERELEKTRON".

11. The Law on Personal Data Enters into Force

The Law of the Republic of Uzbekistan “On Personal Data” comes into force, as well as the norms of the Criminal Code and the Code of Administrative Responsibility, which stipulate liability for violation of legislative acts on personal data.

12. You can exchange an old vehicle for a new one

The TRADE-IN program is being introduced, which provides customers with the opportunity to purchase a new domestic vehicle by transferring their own used vehicle to the official dealer organization and paying a difference in their value.