Tashkent, Uzbekistan (UzDaily.com) -- The Law of the Republic of Uzbekistan "On amendments and additions to the Tax Code of the Republic of Uzbekistan" was discussed at the plenary session of the Senate.

It was noted that the Law will serve to improve the relevant regulations, further support business entities, mitigate the negative impact of the coronavirus pandemic on the economy, increase the number of highly educated specialists wishing to work in budgetary organizations in remote areas, and increase the income of the population.

In particular, the Law extends until January 1, 2022, the period for the application of temporary benefits provided to support tourism, which is one of the areas experiencing economic difficulties during the pandemic.

Benefits provided to budgetary organizations located in remote and hard-to-reach areas for employees hired from among graduates of higher educational institutions, along with their support to a certain extent, will serve to meet local staffing needs.

The law also stipulates exemption from payment of fees for the acquisition or temporary import into the territory of the Republic of Uzbekistan of vehicles powered only by an electric motor (electric vehicles).

In addition, until January 1, 2024, newly created business entities carrying out activities defined as "growth points" for each region and city of the Republic of Karakalpakstan are provided with a 50% discount on income and water taxes.

Entrepreneurs will be able to expand their activities at the expense of tax savings if they use incentives rationally.

The law also establishes separate tax rates for some territories of the Republic of Uzbekistan located in other countries.

In particular, for income tax, personal income tax, social tax (except for budgetary organizations) and turnover tax, the tax rate is set at 1% for Sokh region, the Chungar makhalla citizens ‘gathering of the Rishtan district, the makhalla citizens’ gatherings "Shakhimardan", "Yordon" and "Khosilot" (Toshtepa street) of the Fergana region of Ferghana region.

This Law is intended to mitigate the negative impact of the coronavirus pandemic on economic sectors and increase the income of the population, systematize the regulations governing relations in the relevant areas.

The law was approved by the senators.