Tashkent, Uzbekistan (UzDaily.com) -- A video-conference meeting on additional measures to support entrepreneurship was held on 19 May under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev.
The head of state again separately touched on ongoing work to counter the pandemic.
Of the 2,880 people who were diagnosed with infection, 2 314 or 82 percent recovered completely. More than 78 billion soums were paid to 23 thousand medical workers who show real courage in this direction.
- Along with the fight against the disease, we also take care of our citizens abroad. To date, we have returned 39 thousand compatriots to their homeland. Measures are being taken to provide the necessary assistance and the return of another 12 thousand who found themselves in a difficult situation abroad, Shavkat Mirziyoyev informed.
Activity is restored in various sectors of the economy. For example, over the past week, electricity consumption by business entities increased by 13 percent. Over the past two weeks, cement sales on the exchange increased by 104 thousand tons, fuel - by 74 thousand tons, building glass - by 60 thousand square meters compared to the same period last month.
Dividing the regions into “green”, “yellow” and “red” zones based on the epidemiological situation, about 110 thousand business entities are allowed to resume activities, and more than 600 thousand people returned to their jobs.
In general, over the past two months, 12 decrees and resolutions of the President have been adopted to mitigate the impact of the pandemic on the living standards of the population and the economy. As a result, more than 500 thousand business entities and over 8 million citizens received benefits and preferences in the amount of nearly 30 trillion soums.
On 18 May, the President’s Decree “On Next Measures to Support the Population and Entrepreneurships during the Coronavirus Pandemic” was adopted. According to the document, more than 500 thousand business entities and about 100 thousand people will receive additional assistance worth 1.7 trillion soums.
- No matter how difficult it may be, we have done everything necessary to create the conditions. Now the leaders of the economic and investment complexes and sectors must ensure that these benefits are brought to the attention of every entrepreneur and citizen, the President noted.
The Republican Commission was instructed to gradually allow the activities of more than 40 thousand business entities based on the epidemiological situation in industries and regions. At the same time, it is necessary to strictly observe the rules of quarantine, since 38 regions of the country today remain in the "red" zone.
The pandemic is expected to increase the number of poor and unemployed, and reduce family incomes. Therefore, it is necessary to actively support small business and family entrepreneurship in order to create new jobs in a short time.
The meeting discussed additional measures and priorities in this direction.
First of all, serious attention is paid to ensuring guarantees of the rights of entrepreneurs and the inviolability of their property.
- I warn all khokims. If the property of at least one entrepreneur is seized illegally, the khokim will not get off with a single resignation, but will answer before the law, Shavkat Mirziyoyev said.
The competent authorities have been instructed to strengthen responsibility for violating the inviolability of property, to ensure the full implementation of court decisions on compensation for property of entrepreneurs.
According to the President’s instructions, business activity in each district and city will be analyzed on a monthly basis. The business ombudsman will provide the government with information on khokims of districts and cities that allow violations of the rights and inviolability of property of entrepreneurs.
The Cabinet of Ministers will consider the issue of compliance with the position of khokims of cities and regions that do not solve the problems of entrepreneurs and do not work with them sufficiently.
A new system will be introduced to create decent conditions for self-employed citizens. So, hairdressers, shoemakers, bakers, blacksmiths, carpenters, tailors, taxi drivers, translators, designers, programmers - self-employed representatives of more than 60 professions will be exempt from income tax. To take advantage of this benefit, it will be enough to notify the tax authorities by phone. Based on international best practices, a mobile application will be developed for registration and registration of self-employed citizens.
As you know, as a result of the permission of private notarial practice, 617 state notaries became private, which allowed saving budget funds in the amount of 200 billion soums.
If you transfer to the private sector the services currently provided by state bodies, such as the preparation of cadastral documents and topographic surveys, this will create thousands of new jobs, the meeting indicated.
The Ministry of Economic Development and Poverty Reduction, the Ministry of Justice were instructed to draw up, on the basis of accurate calculations, a list of public services that could be transferred to the private sector.
During the quarantine period, many organizations may lose solvency and be on the verge of bankruptcy. In this regard, a procedure is being introduced according to which, in case of reorganization of an enterprise, its tax and other debt arrears can be repaid after quarantine has ended.
The procedure for selling state assets to entrepreneurs was criticized, and its high bureaucratization was noted. In particular, 53 percent of the land and real estate objects put up for auction remain unsold for a long time due to burdensome investment obligations and the lack of developed infrastructure. In addition, over the past four months in 57 districts and cities not a single land plot was put up for auction for business. 552 objects of state property are empty on the ground.
Instructions were given on the location of production facilities in these structures, and the creation on the basis of some small industrial zones.
From now on, small industrial zones will be organized on the principle of ownership, and the private sector will actively participate in management. The Agency for the Development of Small Business and Entrepreneurship together with local khokimiyats will be engaged in the placement of such zones, the allocation of funds for infrastructure and the involvement of the private sector in management. This year, 200 billion soums will be allocated from the Anti-Crisis Fund to connect these industrial zones to the infrastructure.
As part of mitigating the effects of the pandemic, the repayment term of 1 trillion soums of loans allocated to the program “Every Family is an Entrepreneur” was extended. Therefore, for the full implementation of the program, US$100 million was allocated from the Fund for Reconstruction and Development.
The President emphasized that all restrictions established for entrepreneurs in obtaining loans for products, equipment, raw materials and working capital should be removed. The Central Bank has been instructed to simplify lending conditions for small businesses and family entrepreneurship.
It is noted that in order to create demand for products it is necessary to stimulate trade and expand consumer lending in order to increase the purchasing power of the population.
The meeting also addressed the challenges facing commercial banks.
The problems in this area are evidenced by the fact that 55 percent of appeals received by the People’s Receptions and Receptions of the Prime Minister are related to bank loans. In addition, entrepreneurs’ appeals regarding banking services were positively resolved in 10 percent of cases at the National Bank, in 11 percent - at Microcredit Bank and in 13 percent - at Agrobank.
The head of state emphasized that the activities of banks should be judged by the quality of customer service.
It was emphasized that commercial banks are an important link in the development of small businesses; they should expand the scope of support for entrepreneurs and citizens by investing in “growth points” in each district.
The order was given to dismiss the khokims of certain districts and cities for their shortcomings in working with entrepreneurs.
Responsible persons provided information on how the work will be organized in fulfillment of the tasks set at the meeting.