Domestic sugar prices may change in October

In late June, a presidential decree “On measures to further streamline the provision of tax and customs benefits” was signed.

According to the document, from October 1, the exemption on value-added tax (VAT), including upon importing raw sugar, is abolished.

During the session of the International Press Club to discuss this decree, the representative of the Angren Shakar sugar factory admitted that this, naturally, would raise the cost of production.

Maksud Kilichev, an accountant at Angren Shakar, said that 750 people are currently employed at the plant.

When listing the main risks regarding inflation, the central bank also mentioned the abolition of VAT exemptions, which could lead to additional inflationary pressures.

Uzbekistan solved the sugar problem two years ago by opening borders for import – at the end of 2017, the chairman of the Uzbekozikovkatholding Tokhirjon Jalilov reported that sugar imports not only met the needs of the population, but also led to a decrease in the cost of sugar in the domestic market.

However, in early 2019, Uzbekistan sharply reduced the import of sugar and increased the purchase of raw sugar for its own production.