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Tourism 29/05/2020 Uzbek President signs tourism support sector decree
Uzbek President signs tourism support sector decree

Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev signed a decree “On urgent measures to support the tourism sector to reduce the negative impact of the coronavirus pandemic”.

According to the document, the following proposals of the Republican Special Commission on the preparation of a program of measures to prevent the importation and spread of a new type of coronavirus in the Republic of Uzbekistan, public organizations and tourism entities about were approved:

- the resumption from 1 June 2020 in the regions of the “green” and “yellow” categories of domestic tourism with the start of activities of related organizations (tour operators, travel agencies, accommodation facilities, cultural, cultural heritage and others) with strict observance of established sanitary and hygienic standards and requirements;

- phased resumption of inbound tourism with the definition of a list of countries whose citizens are allowed to enter the Republic of Uzbekistan.

It has been established that for tour operators, tour agents, as well as accommodation facilities: from 1 June to 31 December 2020, income tax rates are reduced by 50 percent of the established rates; the right to transfer losses according to the results of 2020 and 2021 is granted without limiting their sizes provided for by the Tax Code of the Republic of Uzbekistan;

- Till 1 January 2021, the accrual and payment of tourist (hotel) tax is suspended.

Accommodation facilities will be granted the right to interest-free deferment (installment plan) of payment of the local fee for the right to retail alcohol products for a period up to January 1, 2021 with notification to the state tax authorities and their subsequent payment in equal installments within 12 months.

It was determined that at the expense of the extrabudgetary Tourism Support Fund under the State Committee for Tourism Development of the Republic of Uzbekistan (hereinafter - the Fund) additional support is provided:

  1. a) during the period from 1 June to 31 December 2020 in the form of a lump-sum allocation of a target interest-free loan for a period of 12 months, according to the criteria established by the Republican Anti-Crisis Commission: tour operators in the amount of not more than three times the average monthly wage fund for 2019; accommodation facilities in the amount of five times the basic calculated value for each bed;
  2. b) by partially subsidizing “startup” projects and innovative business ideas in the field of tourism, including information programs and services aimed primarily at creating amenities for tourists in accordance with the organization of activities of the Technological Park of software products and information technologies - in the total amount of 1.5 billion soums;
  3. c) from 1 June 2020 to 31 December 2021, by providing grants to project initiators to organize thematic food outlets specializing in foreign cuisine or a separate direction in the regions of the republic (with the exception of the city of Tashkent), providing food and food delivery services as well as delivery of souvenir products in the amount of 30 percent of the project cost, but not more than 100 million soums for each project;
  4. d) during the period from 1 June 2020 to 31 December 2021, through grants for the development and promotion of new tourism products and routes to guides in the amount of 5 million soums, to tour operators - 10 million soums.

Additional state support will be provided:

  1. a) at the expense of the State Fund for the Support of Entrepreneurship through subsidies:

- from 1 March to 1 June 2020, interest expenses of tourism entities on previously issued loans from commercial banks for the construction of accommodation facilities;

- in the period from 1 June 2020 to 1 January 2022, interest expenses of tourism entities on previously issued loans for the construction of accommodation facilities in the part exceeding the basic rate of the Central Bank, but by no more than 10 percentage points;

- interest expenses of tourism entities on loans issued to bring in line with the new requirements of sanitary standards in part, exceeding the basic rate of the Central Bank, but not more than 10 percentage points;

- during the period from 1 June to 31 December 2020, interest expenses on loans issued to tourism entities for working capital replenishment in the amount of up to 1 billion soums in the part exceeding the basic rate of the Central Bank, but not more than 10 percentage points;

  1. b) in the form of subsidizing accommodation facilities in the amount of 10 percent of the cost of accommodation services (hotel services) from 1 June 2020 to 31 December 2021;
  2. c) at the expense of the Fund for payment of bonus subsidies to tour operators and travel agents - residents of the Republic of Uzbekistan, in the amount of 15 US dollars for each foreign tourist brought and served in the Republic
  3. d) at the expense of the Fund by partially subsidizing the costs of tour operators on air and train tickets in the amount of 30 percent of their cost, provided that a tour to the Republic of Uzbekistan for foreign tourist groups of at least 10 people and their stay is not less than five nights in accommodation facilities with the beginning of the resumption of inbound tourism until 31 December 2020;
  4. e) until 1 June 2021, at the expense of the Fund by allocating funds to compensate for hotel expenses for renovation, reconstruction, as well as updating the material and technical base for obtaining or upgrading categories with the condition that they remain in the subsequently assigned category for 3 years in the following amounts:

- 5 million soums for each room in hotels with a category of 3 stars;

- 10 million soums for each room in hotels with a category of 4 stars;

- 15 million soums for each room in hotels with a category of 5 stars.

It has been established that the training of all students admitted to study in 2020 in technical schools and colleges administered by the State Committee of the Republic of Uzbekistan for the Development of Tourism is carried out on an exceptional basis on the basis of a state grant.

The proposals of the State Committee for Tourism Development, the State Tax Committee and the Central Bank of the Republic of Uzbekistan on prolongation from 1 October 2020 for a period of 18 to 24 months of payment of the main debt on previously issued loans were approved.

Legal entities are exempted up to January 1, 2022 from customs payments (except for customs clearance fees and value-added tax) for equipment, machinery, their components and spare parts for disinfection, imported into the territory of the Republic of Uzbekistan that are contactlessly controlled (touch ) equipment for the construction, reconstruction and equipping of buildings and structures, as well as odorless disinfectants according to the lists formed in the established manner.

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