On September 4, Uzbekistan President Shavkat Mirziyoyev reviewed a presentation of measures for creating a value-added chain in agriculture.
In the past years, the areas planted with cotton and grain have been reduced and reoriented towards food crops, 160 thousand hectares of new orchards and vineyards have been planted, and 1.5 thousand projects in the food production sector have been implemented, with a total value of $1 billion. At the same time, the share of the shadow economy in agriculture remains significant. Not all production is reflected in official reports. Today, the value-added tax rate on food sales is 12 percent.
This issue was raised during an open dialogue between the President and entrepreneurs. The head of state instructed to create more favorable conditions for farmers and reduce the tax burden.
In this regard, proposals have been prepared with the participation of the International Monetary Fund, as well as foreign and local experts, to bring the agricultural sector out of the shadow.
According to these proposals, from January 1, farmers will be exempt from value added tax when selling their own products. This exemption will apply to fruit, vegetables, meat, milk, eggs, and other agricultural products, with the exception of cotton and grain.
At the same time, the practice of refunding VAT paid on seeds, fertilizers, fuel, transport, electricity, and other production costs will remain in place.
Overall, these measures will encourage transparency in the agricultural sector and lay the foundation for an increase in the number of large industrial plantations and agricultural processing enterprises.
