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Tourism 03/06/2020 Saving tourism with tax breaks
Saving tourism with tax breaks

Tashkent, Uzbekistan (UzDaily.com) - Many sectors of the economy suffered during the coronavirus pandemic. The tourism sector suffered enormous damage: air communications were stopped, borders were closed, and movement between cities was limited.

The government has taken urgent measures in support of tour operators, travel agents and accommodation facilities. One of the latter is aimed at accelerating the restoration of tourism as the sanitary-epidemiological situation in the country improves. This was reported by the press service of the State Tax Committee.

On 28 May 2020, the Decree of the President “On urgent measures to support the tourism sector to reduce the negative impact of the coronavirus pandemic” was adopted.

In accordance with the document, from 1 June to 31 December 2020, income tax rates are reduced for tourism entrepreneurs. State assistance in this case is about 15.2 billion soums. This means that hotel owners, as well as tour operators and travel agents, leave at their disposal this amount, which is formed in June-December as a result of a reduction in the tax rate by 50%.

There are 184 hotel enterprises and 267 tour operators and travel agents registered in Uzbekistan.

Hotels are located in all areas of the country. In Tashkent, their number is 80, in Samarkand region - 17, 13 in Tashkent and Khorezm regions, 12 in Bukhara region, 8 in Andijan and Kashkadarya regions, 7 in Navoi and Ferghana regions. From them, on average, for the month the budget received the amount of income tax in the amount of 968.2 million soums. And the amount that, according to the reduced rate, remains at their disposal, is equal to 3.5 billion soums.

For 267 tour operators and travel agents, the average monthly income tax rate was 3.4 billion soums. After applying the benefits in June-December, namely, reducing the tax rate by 50%, they have at their disposal an amount equal to 11.8 billion soums.

Tax breaks are designed for the period from June to December of the current year and are designed to reduce the negative impact of the coronavirus pandemic, preserve jobs and qualified specialists, support their income and the tourism sector as a whole.

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