Tashkent, Uzbekistan (UzDaily.com) -- A Presidential Decree "On additional measures to develop the service sector" was adopted.

In accordance with the Decree, priority areas for the development of the service sector were determined.

Wherein:

densely populated streets, where major repairs have been carried out, the modernization of outdoor lighting, irrigation and drainage systems, the construction of pedestrian and bicycle paths, will be transformed into shopping, service-oriented, park and entertainment streets;

in Tashkent, Nukus, regional centers and other cities, an inter-mahalla trade and service street will be created for a maximum of 3-5 mahallas;

in Tashkent, Samarkand and Namangan, specialized clusters will be created on the territories of educational and medical institutions.

According to the Decree, from 1 April 2022 to 1 January 2025, social tax for entrepreneurs providing retail and catering services, hotel services (accommodation), passenger and freight transport by road, repair and maintenance of vehicles, computer services, repair of household technology, agro- and veterinary services and services provided in entertainment centers, is set at 1 percent.

For entrepreneurs from 1 January 2022 to 1 January 2027 for hotels and shopping malls with an area of more than 5 thousand square meters:

land tax and property tax rates will be reduced by 90 percent;

when calculating income tax, to attribute the cost of buildings to deductible expenses in the form of depreciation within two years.

From 1 April 2022 to 1 January 2025, for entrepreneurs providing catering, hotel, shopping and entertainment, tour operator and travel agency services in 28 districts and cities, the following is established:

turnover tax - 1 percent;

property and land tax - 1 percent of the amount accrued for these types of taxes.

Also, from 1 July 2022, in the indicated districts and cities, the procedure for putting up electronic online auctions of land plots for the construction of tourist facilities will be introduced.

Until 1 January 2024, the established rate of property tax and land tax for individuals will be maintained when residential facilities located along the intermahalla shopping and service streets are transferred to the category of non-residential facilities for the provision of relevant types of services.

From 1 January  2022, the excise tax rate on cellular services for mobile operators will be set at 10 percent.

According to the Decree, certain goods imported into Uzbekistan (equipment for transmitting or receiving sound, images or other data, data storage devices, projectors, speakers, headphones) are exempt from customs duties from 1 February 2022 to 1 January 2025.

During 2022-2023, 640 service facilities will be created on the New Uzbekistan arrays.

Also, land plots in the respective districts (cities) will be put up for auction using an electronic online auction, subject to the construction of non-state educational and preschool educational institutions.

To finance new projects in the service sector, loans in the amount of up to 2 billion soums will be allocated for one project at a rate of 14 percent.