An entrepreneurial sustainability rating to be introduced

19:53 15 January 2024 Economy
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On January 15, President Shavkat Mirziyoyev reviewed the presentation on the introduction of sustainability rating for entrepreneurs.

The development of entrepreneurship is a priority in the economic policy of our country. Uzbekistan is consistently working towards improving its business environment. In the current Year of Supporting Youth and Business, broad opportunities for doing business will be created. This will enhance the provision of employment for 5 million people. 83 trillion UZS and 275 million USD are set to be allocated in loans and subsidies for this purpose. 

The proposed rating is intended to become another incentive for entrepreneurial activity. Its importance was discussed during an open dialogue held between the Head of state and entrepreneurs.  After, criteria and procedure principles for this rating were developed.

The rating provides for the division of entrepreneurs into four categories according to 23 criteria, such as duration of activity, level of profitability, payment discipline, participation in employment of the population, and wages. The rating will be formed based on data from tax, justice, and judicial authorities. Each entrepreneur can find out his position and assessment in real-time.

Entrepreneurs with a high rating will enjoy several benefits including the cancellation of all tax inspections, VAT return in one day, and refund of overpayment for other types of taxes within three days. The possibility of mutual offset by customs and tax authorities of VAT when importing and selling goods will be created. The term of payment for state property and land plots purchased at auction will be extended from 3 to 5 years, without annual accrued interest on the remaining amount after a one-time initial payment of at least 15%. 

The rating is also important because now the activities of entrepreneurs will be assessed not by tax authorities, but by an electronic system. In the future, subsidies, benefits, and preferences will be granted based on the rating. Entrepreneurs will strive to join the ranks of disciplined entrepreneurs and gain more opportunities.

At the same time, the rating system will serve as a protection system, providing entrepreneurs with reliable information about their partners, and warning about the risk of dubious transactions and unfair competition. This will help reduce the shadow economy.

The Head of state noted the need to design the system thoroughly and ensure its effectiveness and objectivity.  

“Based on entrepreneurs’ proposals, we are improving business conditions. A recent decree abolished 16 licenses and 34 types of reporting. The business class is becoming a leading force in society, and the youth look up to them. Now, it is necessary to stimulate law-abidingness, discipline, and initiative among entrepreneurs through this rating. The Public Council for Entrepreneurship Support should play an important role in implementing and ensuring the effectiveness of the rating,” Shavkat Mirziyoyev said.

The Entrepreneur Sustainability Rating platform is scheduled to be launched by March 1, 2024. The Chamber of Commerce and Industry will carry out comprehensive work with entrepreneurs to explain the possibilities of the rating. A transparent system of allocation of subsidies, benefits, and preferences will be organized.

The importance of targeted work with entrepreneurs at low rates and assistance in intensifying and restoring their activities was emphasized.

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