President signed a decree to support the tourism sector

President signed a decree to support the tourism sector

President of Uzbekistan Shavkat Mirziyoyev signed a decree "On urgent measures to support the tourism sector to reduce the negative impact of the coronavirus pandemic."

According to the document, the following proposals of the Republican Special Commission for the preparation of the Program of Measures to Prevent the Import and Spread of a New Type of Coronavirus in the Republic of Uzbekistan, public organizations and tourism entities on:

  • the resumption from June 1, 2020 in the regions of "green" and "yellow" categories of domestic tourism with the beginning of the activities of related organizations (tour operators, travel agencies, accommodation facilities, cultural objects, cultural heritage and others) in strict compliance with the established sanitary and hygienic standards and requirements;
  • phased resumption of inbound tourism with the definition of a list of countries whose citizens are allowed to enter the Republic of Uzbekistan.

It was found that for tour operators, travel agents, as well as accommodation facilities:

  • in the period from June 1 to December 31, 2020, income tax rates are reduced by 50 percent of the established rates;
    the right to carry forward losses at the end of 2020 and 2021 is granted without limiting their size, provided for by the Tax Code of the Republic of Uzbekistan;
  • in the period until January 1, 2021, the calculation and payment of the tourist (hotel) tax is suspended.

Accommodation facilities will be given the right to an interest-free deferral (installment plan) of payment of the local tax for the right to carry out retail trade in alcoholic beverages for a period until January 1, 2021 with notification of the state tax authorities and their subsequent payment in equal installments within 12 months.

It was determined that at the expense of the extra-budgetary Fund for Support of the Tourism Sector under the State Committee of the Republic of Uzbekistan for Tourism Development (hereinafter referred to as the Fund), additional support is provided:

a) in the period from June 1 to December 31, 2020 in the form of a one-time allocation of a target interest-free loan for a period of 12 months, according to the criteria established by the Republican Anti-Crisis Commission:

  • tour operators in the amount of no more than three times the average monthly wage fund for 2019;
  • accommodation facilities in the amount of five times the base calculated value for each bed;

b) by partially subsidizing "start-up" projects and innovative business ideas in the field of tourism, including information programs and services aimed primarily at creating amenities for tourists in accordance with the procedure for organizing the activities of the Technological Park of software products and information technologies - a total of 1.5 billion soums;

c) in the period from June 1, 2020 to December 31, 2021 by allocating grants to project initiators for organizing thematic food outlets in the regions of the republic (except for the city of Tashkent), specializing in foreign cuisine or a separate area, providing services for the delivery of food and food , as well as delivery of souvenirs in the amount
30 percent of the project cost, but not more than 100 million soums for each project;

d) in the period from June 1, 2020 to December 31, 2021 by allocating grants for the development and promotion of new tourism products and routes to guides in the amount of 5 million soums, tour operators - 10 million soums.

Additional government support will be provided:

a) at the expense of the State Fund for the Support of Entrepreneurship by Subsidizing:

  • in the period from March 1 to June 1, 2020, interest expenses of tourism entities on previously issued loans from commercial banks for the construction of accommodation facilities;
  • in the period from June 1, 2020 to January 1, 2022, interest expenses of tourism entities on previously issued loans for the construction of accommodation facilities in the part that exceeds the basic rate of the Central Bank, but not more than 10 percentage points;
  • interest expenses of tourism entities on loans issued to bring them in line with the new requirements of sanitary and hygienic standards in the part that exceeds the basic rate of the Central Bank, but not more than 10 percentage points;
  • in the period from June 1 to December 31, 2020, interest expenses on loans issued to tourism entities to replenish working capital in the amount of up to 1 billion soums in the part that exceeds the basic rate of the Central Bank, but not more than 10 percentage points;

b) in the form of subsidizing accommodation facilities in the amount of 10 percent of the cost of accommodation services (hotel services) from June 1, 2020 to December 31, 2021;

c) at the expense of the Fund for the payment of premium subsidies to tour operators and travel agents - residents of the Republic of Uzbekistan, in the amount of 15 US dollars for each foreign tourist brought and served in the Republic of Uzbekistan, provided that they stay in the territory of the Republic of Uzbekistan for at least five days, with the exception of foreign tourists, arriving on compensated charter flights
in accordance with the Decree of the President of the Republic of Uzbekistan dated August 13, 2019 No. UP-5781 "On measures for the further development of the tourism sector in the Republic of Uzbekistan", from the beginning of the resumption of inbound tourism until the total number of incoming foreign tourists reaches 500 thousand people;

d) at the expense of the Fund by partially subsidizing the costs of tour operators for air and railway tickets in the amount of 30 percent of their cost, provided that a tour to the Republic of Uzbekistan is organized for foreign tourist groups of at least 10 people and their stay for at least five nights in accommodation facilities with the beginning of the resumption of inbound tourism and until December 31, 2020;

e) until June 1, 2021 at the expense of the Fund by allocating funds to compensate for hotel expenses for renovation, reconstruction,
as well as updating the material and technical base for obtaining or raising categories by them with the condition of maintaining the subsequently assigned category for 3 years in the following amounts:

  • 5 million soums for each room in hotels with a 3-star category;
  • 10 million soums for each room in hotels with a 4-star category;
  • 15 million soums for each room in hotels with a 5-star category.

It has been established that the training of all students admitted to study in 2020 in technical schools and colleges under the jurisdiction of the State Committee of the Republic of Uzbekistan for the Development of Tourism is carried out on an exceptional basis on the basis of a state grant.

The proposals of the State Committee for Tourism Development, the State Tax Committee and the Central Bank of the Republic of Uzbekistan on prolongation from October 1, 2020 for a period of 18 to 24 months, on the payment of the principal debt on previously issued loans were approved.

Legal entities are exempted for a period until January 1, 2022 from paying customs payments (except for customs clearance fees and value added tax) for equipment, machinery, their components and spare parts for disinfection work imported into the territory of the Republic of Uzbekistan, contactlessly controlled (sensory ) equipment for the construction, reconstruction and equipping of buildings and structures, as well as odorless disinfectants according to the lists formed in accordance with the established procedure.

Source: uzbektourism.uz