Uzbek President holds meeting to discuss expanding production of localized goods
21/02/2018 17:30
Uzbek President holds meeting to discuss expanding production of localized goods
21/02/2018 17:30
Tashkent, Uzbekistan (UzDaily.com) -- On 21 February, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting devoted to the analysis of the ongoing activities on reducing the volume of imports and expanding production of localized products, determining the most important tasks in this direction, the press service of the President of the Republic of Uzbekistan said.
Earlier, on 19 April, 2017, a meeting was held on these issues, where specific measures were identified on optimizing the volume and range of imports through expansion of localization. In accordance with them, a number of activities were carried out last year.
In particular, within the framework of the Localization Program, production to 9,9 trillion sums has been produced. Products for US$512 million or 20 percent more than in 2016 were exported. The output of 100 new types of products was mastered, imports in basic industries decreased by US$353 million.
The Head of the state, considering the implementation of the Localization Program and the import reduction plan, criticized the shortcomings. It was noted that in 2017, production did not start on 176 out of 948 localization projects, production forecasts on 218 projects was not fulfilled.
Thus, according to 77 projects of the Agency for Development of Pharmaceutical Industry, production was not provided for 206 billion soums. 12 projects of JSC “Uzbekozikovkatholding” (food industry), 17 projects of JSC “Uzavtosanoat” (automobile industry), 65 projects in the city of Tashkent and the same number in Tashkent region have not been implemented at the proper level.
The fact that the import reduction plan for 1 billion 81 million dollars was executed by 88 percent was criticized.
It was said that some enterprises increased imports of goods, despite these products are manufactured in Uzbekistan. In 2017, such products were imported for US$185 million, in January this year – US $65 million.
Last year, “Uztukimachiliksanoat” Association (textile industry) imported LED lamps, floodlights and other goods worth US$9 million, NHC “Uzbekneftgaz” (oil and gas industry) – steel pipes, cables, heating boilers, electrodes for US$2 million, JSC “Uzbekenergo” (energy industry) – steel wires and cars for US$800,000.
At the meeting, ongoing activities on localization of equipment and components in these and other industries were discussed.
For 10-15 years, we are talking about organizing in our country of equipment production and wear parts necessary for branches. But there are no initiatives and practical actions. Leaders of a number of spheres do not think about localization, choose the easy way and import necessary products from abroad. This takes currency funds, which are difficult to obtain in current conditions of competition, said President Shavkat Mirziyoyev.
The meeting also considered effectiveness of tax and customs benefits provided to stimulate localization.
As a result of unreasonable collection of customs payments for certain types of goods, the price of products produced in Uzbekistan is higher than imported analogues. For example, equipment imported for textile industry is exempt from all customs duties. However, the import of components for production of such equipment is subject to a 20 percent value-added tax.
The same inconsistencies are observed for tax benefits. In this regard, from 1 April 2018, the benefits of localization projects will be terminated. Various unscrupulous enterprises will be deprived of the possibility of avoiding taxes through participation in the Localization Program. The program will include only projects, which are really necessary for the economy, their implementation will be taken under strict control.
The President determined the actual tasks to eliminate existing deficiencies in the fieldthe development of localization.
The ministries of economy and foreign trade were instructed to form a new, comprehensively elaborated Program of localization. It was pointed out that it is necessary to make concrete proposals on abolition of customs payments for import of certain components, which cannot be localized at a competitive price.
Instructions are given on organization of production of equipment for large enterprises and small businesses, wearing parts, stamped products and small hydro generators.
The task was set up to form an Interdepartmental Working Group on organization of new localization capacities on the basis of a system analysis of the import volumes and structure, comprising of heads and responsible employees of the Ministry of Foreign Trade, the State Customs Committee, the Ministry of Finance, the Central Bank and economic associations.
It was entrusted to optimize the rates of customs payments for certain goods to support domestic enterprises.
Our main goal is to ensure development of the country, the welfare of the people, Shavkat Mirziyoyev said. He said that to achieve this, first of all, our economy must be competitive, and products must be produced in our country. All leaders must draw the appropriate conclusions and radically change their attitude towards the fulfillment of the tasks assigned, he added.
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