Uzbekistan to abolish excise duty on sugar

Uzbekistan will abolish the excise duty on sugar and lift restrictions on the import of powdered milk. These measures were discussed on April 18 during a videoconference chaired by President Shavkat Mirziyoyev, focused on mitigating the impact of global economic shocks on the country’s sectors and industries.

The meeting emphasized that the confectionery and soft drinks industry has already become a key driver of local manufacturing, highlighting the need for continued support. In this regard, the decision was made to abolish the excise tax on sugar. Additionally, import restrictions on powdered milk will be removed.

As a result, the annual turnover of 5,500 confectionery and soft drink enterprises—employing nearly 40,000 people—is expected to reach at least 50 trillion sums.

The discussion also touched on issues in the catering sector. Currently, around 2,500 restaurants and cafés are subject to VAT. Since the beginning of the year, a cashback system has been introduced that allows for a refund of 20 to 40 percent of VAT. However, to date, only 69 catering establishments have utilized this benefit.

One of the reasons is that cashback is not applied to over 200 items, such as soft drinks, cakes, and ice cream, when sold separately—even though VAT is charged on them. The President instructed the Tax Committee to address these discrepancies and establish a fair and transparent system.