Shavkat Mirziyoyev proposes exemption from social tax for low-income citizens for 3 years

POLITICS 17:05 / 12.09.2024 1252

As it was previously reported, Shavkat Mirziyoyev held a meeting focused on poverty reduction.

In 2025, $1.6 billion is planned to be allocated for the development of mahalla (local neighborhood) infrastructure from various sources. Of this amount, 1.2 trillion UZS will be directed towards installing water pumps and solar panels in 300 of the most underdeveloped neighborhoods, and 2 trillion UZS will be allocated for electricity supply, roads, internet, and infrastructure in 500 of the most challenging neighborhoods.

To carry out these projects, 250 leaders—including ministers, their deputies, advisors, and heads of departments—will be assigned to oversee 1,000 of the most difficult neighborhoods. Additionally, 2,000 regional and 12,000 district-level leaders will each be assigned to assist five families facing the toughest conditions.

After the August meeting with the president, businesses expressed their readiness to employ 500,000 people "with the necessary skills and desire."

For instance, an entrepreneur from the Balikchi district proposed implementing a cooperative system based on the Chinese model to employ 520 low-income individuals.

Upon receiving a loan, the businessman is prepared to open a business in every district of the Andijan region, involving 30 poor families as shareholders and paying them 4-5 million UZS monthly. The main condition for obtaining the loan is ensuring the employment of the poor.

Additionally, job opportunities were noted in the fields of fish farming and poultry farming in Andijan region. The president ordered the creation of a new financing system for such projects.

At the meeting, it was announced that fishing cooperatives would be allocated at least 10 hectares of land near pumping stations in Andijan. As a result, at least 200,000 people in need will be employed in poultry farming and fishing.

Two years ago, food service establishments were granted a social tax relief, reducing the rate from 12% to 1%. In a short time, major brands created 2,000 jobs in the food service sector.

If this tax relief is extended for another two years, the food service industry is ready to create another 150,000 jobs for low-income individuals.

Some enterprises plan to open call centers and provide computers and phones to 2,000 people with disabilities. If service sector entrepreneurs employ low-income citizens, the tax relief may be extended again.

The textile industry has requested an extension of the social tax relief. Shavkat Mirziyoyev noted that for every low-income employee hired, the enterprise will be exempt from paying social tax for three years.

"This benefit will not only apply to the textile industry but possibly to enterprises in all sectors," said the president's press secretary Sherzod Asadov.

With the use of this tax relief, it is possible to employ 120,000 low-income citizens in the textile industry, construction materials, craftsmanship, and the leather and footwear sector; 120,000 in agriculture and livestock; 25,000 in construction; and 20,000 in the electrical industry.

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