PD-4455 On measures to further radical improve the business environment and providing greater freedom of entrepreneurship

To note that in recent years in Uzbekistan has adopted a broad package of measures to consistent progress towards the deepening of market reforms and liberalization of the economy, improve the business environment, competition, encourage the accelerated development of small businesses and private entrepreneurship.

As part of an approved program of measures to deepen and widen the scale of reforms in the economy of Uzbekistan for the period 2011-2015 years only Over the past year implemented specific measures to provide greater freedom of entrepreneurship, and strengthen the provision of priority legal protection of private property, to reduce interference government and regulatory bodies in the financial and economic activities of enterprises.

At the legislative level, introduced the principle of priority of the rights of entrepreneurs in the relationship of businesses with government, law enforcement and regulatory agencies.

Greatly simplified and less expensive procedure of registration of entrepreneurship, connecting them to the engineering and communication networks, customs clearance of export goods. Entered the order prohibiting the conduct routine tax audits of small businesses in three years from the date of their registration. Installed a new, more sophisticated, open and transparent mechanism for public procurement, in which the preference given to small businesses. Began a phased transfer of all subjects Small business and entrepreneurship in the delivery of an electronic system tax and financial reporting.

At the national and regional levels, introduced a system of quarterly indicators to assess the extent of liberalization and modernization of the economy, the level of formation of the country’s business climate.

As a result, in comparison with 2000 the share of small businesses in gross domestic product increased from 31 to 54 percent, employment in this area increased over this period more than 2 times and it accounts for more than 75.1 percent of those employed in sectors of the economy. Currently in the private sector generated 82.5% of GDP, 91% of industrial output and almost all agricultural products.

However, the current state of the business environment, business conditions not yet fully meet the requirements and principles of a free market economy, international norms and standards. It is still not eliminated unnecessary regulation of business activity in industries and sectors of the economy continue to operate bulky, expensive, non-transparent administrative procedures, bureaucratic barriers and obstacles are still present.

Required, as is customary in the current international practice, further simplification, reduction, and reduction in the number of regulatory procedures ubiquitous widespread adoption of contactless electronic forms relationship between government, regulators and business entities.

In order to radically improve the business environment, creating the most favorable conditions for entrepreneurship, reduce, simplify and improve the transparency of all types of procedures, related to the activities of enterprises, the introduction of a common in the world practice of evaluation criteria of the business environment and on this basis further improve the international ranking of business and the level of country’s investment climate:

  1. Take note that the Ministries of Economy and Finance, Central Bank of the Republic of Uzbekistan jointly with the concerned departments and structures in accordance with the World Bank and its division International Finance Corporation, the method for generating reports “Doing Business” the great work on the state of factor analysis business environment and the introduction of evaluation criteria and indicators for defining country rating.
  2. Identify the major tasks of the present stage of deepening market reforms and liberalization of the economy:

radically improve the business climate in the country, creating even more favorable conditions for rapid development of enterprise activity, increasing the share of private property in economic development through improvement of legislation aimed at strengthening the protection of human employers, further elimination of bureaucratic barriers, reduce and simplify the registration and licensing procedures, improving tax and customs administration, accounting and reporting; widespread adoption of internationally accepted international criteria assessment of business conditions and achieve high performance in assessments leading international financial, economic and rating organizations; further deepening of the domestic competition, the creation of all business entities, regardless of ownership and organization their activities are equal business conditions, increased access to market principles to the raw material and credit resources, participation in public procurement tenders for the implementation of products and implementation of the contract work; provide a broad transition to an electronic system, including the Internet, provision of statistical, financial and tax reporting, payment taxes and compulsory payments, registration and implementation licensing procedures, land allocation and connection engineering and communication networks, as well as lending to business, eliminating direct contact between the state, regulators and business entities, bureaucratic red tape and corruption.

  1. Create from 1 August 2012 the specific standards and measures aimed at further improve the business environment, according to Appendix № 1. The Cabinet of Ministers, Head of Cabinet of Ministers ministries and departments – the perpetrators, Annex Number 1, before August 1, 2012 to bring regulations in compliance with this paragraph of the Decree.
  2. To approve the program of comprehensive measures to improve legislation and implementation of measures aimed at further improving the cardinal business environment and providing greater freedom of entrepreneurship, the input in 2013-2014, in accordance with Annex № 2. Ministries, departments, banks, the Council of Ministers Karakalpakstan, regional and Tashkent city – responsible performers introduce in a timely manner for approval by the Cabinet of Ministers envisaged in the program specific measures. To impose personal responsibility for the timely and proper execution of activities included in the Program of measures on the heads of relevant ministries, agencies, public authorities in the field. The Cabinet of Ministers to establish strict control over the implementation of the system provided for in Annex № 2 measures on a quarterly basis to consider at its meetings of the course of their performance and take necessary measures for their unconditional implementation.
  3. Set to 1 January 2013 the order in which businesses have choice of submitting procedures in electronic form:a relevant organs of state and economic management such as:

– taxes and other obligatory payments by the remote system maintenance of bank accounts, including those of the “Internet banking” – State Tax Committee, the Central Bank of the Republic of Uzbekistan, commercial banks;

– declaration of the subjects of business goods at customs clearance of goods – State Customs Committee of the Republic Uzbekistan;

– registration of ownership of legal entities for real estate in the principle of “one window” – Goskomzemgeodezkadastr Republic of Uzbekistan;

– filing pleadings and motions of businesses in the commercial courts – the Supreme Economic Court of the Republic of Uzbekistan. Uzbek Agency for Communication and Informatization of the Republic of Uzbekistan jointly with the other interested agencies to provide practical support given judicial and public authorities, commercial banks in introduction of electronic forms and systems maintenance business structures.

Recommend to commercial banks to reduce by at least 20 percent the fee charged for the service account of the small businesses engaged in electronic payments.

  1. The Cabinet of Ministers of the Republic of Uzbekistan jointly with the Ministry of Economy, Ministry of Finance, Central Bank, Ministry of Justice, Commerce and Industry of the Republic of Uzbekistan, the National Information Agency and the National Radio Company of Uzbekistan, Council of Ministers of the Republic of Karakalpakstan, regions and Tashkent, and other interested parties on a regular basis ensure that the advocacy for the measures taken to further improve the business environment and providing greater freedom for private enterprise.
  2. The Cabinet of Ministers of the Republic of Uzbekistan jointly with the Ministry of Justice, Ministry of Economy, Ministry of Finance, Ministry of Foreign Economic Relations, Investments and Trade, the Central Bank Republic of Uzbekistan, other concerned agencies in the two-month period to ensure changes and amendments to the legislation, arising from this Decree.
  3. To entrust the control over the execution of this decree to the Prime Minister of the Republic of Uzbekistan Sh.M. Mirziyoev.


Islam Karimov, President of the Republic of Uzbekistan