The VAT privilege for imports of butter, meat, and potatoes will be extended

The preferences to Value Added Tax (VAT) for the import and the realization of vegetable oil, meat, and potato products may be extended.  This was reported by MP of the Legislative Chamber of the Oliy Majlis (Parliament) of Uzbekistan, Daniyar Ganiyev.

According to the draft law on amendments to the Tax Code, the duration of VAT preferences on turnovers for the import of vegetable oil, sunflower and flax seeds and soybeans to the territory of the Republic of Uzbekistan, as well as the production and (or) sale of vegetable oil term of benefits will be extended until 31 December 2022.

In addition, the draft law proposes the exemption of VAT from trade turnovers on the import of meat (cattle, sheep), live animals (cattle, sheep) and their products after slaughtering, as well as the import of potatoes into the territory of the Republic of Uzbekistan until 31 December 2022.

According to the opinions of World Bank experts, due to the situation in Ukraine, food prices are expected to rise worldwide to the highest level in the past 50 years. In particular, given that 60 percent of the world demand for vegetable oil is met by Ukrainian and Russian exports, it is assumed that world oil prices will increase by at least 30 percent within the current year.

«It is natural that in this case the granting of VAT concessions on the import of vegetable oil, as well as meat and potatoes, will serve to fully satisfy the population’s need for basic foodstuffs and maintain the stability of prices for these products on the markets»- Ganiev says.

The draft law will be considered at the plenary session of the Legislative Chamber of the Oliy Majlis tomorrow, if it is adopted by the MPs at the next session of the Senate on 29 April.