Tashkent, Uzbekistan (UzDaily.com) — At a session of the Legislative Chamber of the Oliy Majlis of Uzbekistan, the second reading was held on a draft law aimed at ensuring employment and developing the production of high value-added goods through support for business entities.

The draft law proposes amendments and additions to two existing codes and three laws to provide benefits for entrepreneurs.

In particular, it suggests granting profit tax and property tax exemptions to entrepreneurs producing goods based on advanced technologies. It also provides for exemption from land tax on pasture lands in permanent use by territorial pasture farms established as state institutions.

In addition, the bill introduces tax incentives to support the light industry, the services sector, participants in the mortgage market, pharmaceutical manufacturers, and residents of creative parks.

The proposal also shortens the period for terminating the activities of business entities that do not conduct financial and economic operations from three years to one year. This means that an individual entrepreneur paying turnover tax or VAT may be deregistered by decision of the registering authority at the initiative of the tax authority if their activities are not resumed within a year after being placed in inactive status.

This change is intended to improve the assessment of business activity, ensure accurate economic and statistical indicators, and reduce the shadow economy.

The draft also sets a reduced social tax rate of 1% for entrepreneurs in certain sectors who employ young people under the age of 30, thereby promoting the employment of young specialists.

Deputies noted that the proposed measures will contribute to the creation of new jobs, support entrepreneurship, and develop the production of high value-added goods.

After discussions, the draft law was approved by deputies in its second reading.