Thursday, 08, December, 2022

Finances

The Asian Infrastructure Investment Bank (AIIB) has approved a US$ 100 million loan to ACWA Power Sirdarya for the construction of a 1,500 MW thermal power plant with combined cycle gas turbines in the Syrdarya province of Uzbekistan, the bank's said.

UNDP, the Ministry of Emergency Situations, OSCE – implementers of the joint project on the uranium legacy remediation in Central Asia – jointly with NGO Ekomaktab (EcoSchool) awarded 24 winners of a Disaster Risk Reduction Drawing Contest. The contest was conducted among schoolchildren living in uranium legacy areas of Uzbekistan, namely Charkesar, Namangan and Yangiabad, Tashkent region.

On November 3, Tashkent hosted a meeting of the Uzbekistan-EU subcommittee on cooperation co-chaired by Deputy Minister of Investment and Foreign Trade Shukhrat Vafayev and Head of the European Commission Department Sara Rinaldi, the press service of the Ministry of Investment and Foreign Trade reported.

The President Shavkat Mirziyoyev signed a decree approving the Agreement on the establishment of the Uzbek-Kyrgyz Development Fund (UKDF), signed in March this year in Tashkent by the governments of Uzbekistan and Kyrgyzstan.

The Government of Japan is partnering with IFC to help modernize the country’s cotton and fertilizer industries and support economic growth.

The State Assets Management Agency announced that it engaged international consultants and audit companies for the privatization of 99.02% of the block of shares in Ferganaazot.

Uzbekistan plans to reduce the economy's dependence on foreign exchange by developing derivatives market. This issue was raised on October 12 at a meeting between the Deputy Finance Minister Odilbek Isoqov and Treasury Director of the European Bank for Reconstruction and Development (EBRD) Axel van Nederwen.

Google LLC and Microsoft Ireland Operations Limited (Microsoft Store) have been registered in Uzbekistan as VAT payers, the State Tax Committee said.

Now, when paying for services, one also needs to take into account the 15% VAT.

Over the past two years, Google Commerce Limited, Google Voice, Google Ireland Limited and Google Cloud EMEA, registered in the United States and Ireland, have also been registered by the Uzbek tax system.

While, Xsolla, Netflix, Apple, Samsung, Booking.com, Facebook, Spotify, LinkedIn and other foreign companies are also registered at the VAT office.

The so-called Google tax is stipulated by the new edition of the Tax Code, which took effect on January 1, 2020. A month later, the State Tax Committee opened a special VAT office so that foreign Internet companies could register as payers.

There is a "Google tax" in other countries as well. In Russia, since 2016, a law on the payment of VAT on electronic services has been launched. The tax is levied on any services sold over the Internet: advertisements, sales of applications, games, website hosting, music, films, and others.

The former Deputy Chairman of the State Tax Committee Abdulla Azizov, now serving as Deputy Minister of Health, said that neighboring countries were interested in how Uzbekistan managed to introduce this practice into the tax system.

“When I presented the new system to the State Tax Committee and collected taxes from Google, Apple, Netflix and other international companies, people called from Kyrgyzstan, Kazakhstan and Tajikistan and asked how we did it. We shared our experience,” he said.

The deputy Health Minister hopes that neighboring countries will show the same interest after the digitalization of the healthcare system in Uzbekistan, on which he is currently working.

Former regional director of Yandex for Uzbekistan Yevgeny Lukyanchikov called the decision to introduce a Google tax a digital suicide." He said that the introduction of this tax provides for the abolition of double taxation under international treaties. The State Tax Committee explained that this was not a new tax, but "a mere VAT extended to e-sphere.

Fitch Ratings has affirmed Uzbekistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB-’ with a Stable Outlook, the company said on Friday.

During the visit of an EBRD delegation to Uzbekistan, an accord was signed on the provision of the first corporate loan in Uzbekistan’s history without a state guarantee for an energy project.

The European Bank for Reconstruction and Development (EBRD) and Uzbekistan’s second-largest lender, Uzsanoatqurilishbank (UzSQB), are providing new funds to support and strengthen local manufacturers of medical goods in order to meet growing market demand during the Covid-19 pandemic.

The Asian Development Bank (ADB) today approved a $100 million policy-based loan to support policy, regulatory, and institutional reforms needed to create an enabling environment for competitive financial markets in Uzbekistan.

On September 30, the President Shavkat Mirziyoyev hosted the visiting CEO of VTB Bank Andrey Kostin, who arrived to attend the Tashkent Economic Forum program.

The Asian Development Bank (ADB) and Sanoat Qurilish Bank (SQB) today signed a revolving credit facility agreement during the Uzbekistan Economic Forum. Under the new agreement, ADB’s Trade and Supply Chain Finance Program (TSCFP) will provide up to $16.6 million to support SQB’s trade finance transactions.

A clear focus on urbanizing secondary cities in Uzbekistan through strategic, bottom-up planning and investments can help the government achieve more balanced territorial development and meet its urbanization target of 60% by 2030, according to a new report by the Asian Development Bank (ADB).

Sovcombank, Gazprombank, Rosselkhozbank and Asia-Invest Bank will act as organizers of the first issue of bonds in Russian rubles by National Bank for Foreign Economic Affairs of Uzbekistan (NBU).

The Hungarian OTP Bank OTP Bank will enter into an agreement to purchase 75% of the government's stake in Ipoteka Bank, the Deputy PM/Minister of Economic Development and Poverty Reduction Jamshid Kuchkarov announced today at an economic forum in Tashkent.

Uzbekistan’s economy is expected to grow by 5.0% this year and by 5.5% next year assuming a smooth coronavirus disease (COVID-19) vaccine rollout and the rapid recovery for industry, services, investment, and private consumption continues, the Asian Development Bank (ADB) said in a report today.

A funding gap of €40 million must be closed to finance urgent work addressing the imminent danger caused by radioactive and toxic waste in Central Asia, according to a new cost estimate published by the International Atomic Energy Agency (IAEA) during its General Conference in Vienna today.

Makhtar Diop, IFC’s Managing Director, concluded a two-day visit to Uzbekistan, where he had discussions with President Shavkat Mirziyoyev and senior state officials on scaling up IFC’s engagements in the country. The meetings, which also included exchanges with women entrepreneurs and IT start-ups, are part of IFC’s broader efforts to increase private sector participation in the economy, support the country’s economic transformation, and attract more private investment despite the COVID-19 pandemic.