23:27 / 04.08.2020
Antimonopoly Committee opposed granting of benefits to certain cotton clusters 

“Uztuqimachiliksanoat” Association has submitted for approval a draft resolution of the Cabinet of Ministers on State support for the provision of the agricultural sector with agricultural machinery.

Photo: KUN.UZ

The second paragraph of the document notes that the cotton clusters of Indorama Agro LLC and Pahtakor Tex LLC are exempt from customs duties until December 31, 2021, when importing agricultural machinery and spare parts (except for customs clearance fees). Proposals have been outlined to defer payment of value-added tax for up to 270 days.

“In accordance with Article 12 of the Law of the Republic of Uzbekistan “On competition”, State and local government bodies are prohibited from giving preference to individual business entities when concluding contracts, granting them unreasonable preferences, benefits and privileges,” the press service of the Antimonopoly Committee stated.

In addition, the need to provide tax and customs benefits and preferences, as well as temporary benefits for industries and regions in general, aimed at developing competition and ensuring the achievement of specific social, economic and financial programs is given for a period of not more than 3 years.

The Committee also recalled that in accordance with the presidential decree dated September 8, 2017, on approval of the concept of administrative reform in the Republic of Uzbekistan, restrictive measures have been established for the creation of state commercial organizations and the reorganization of existing enterprises in areas, where the private sector works effectively, also provides for the abandonment of the practice of granting exclusive rights, individual privileges and preferences to certain business entities, which restrict the development of a healthy competitive environment.

“The draft resolution has been studied by the committee. The opinion on the norms contradicting the requirements of the Law “On competition” was sent to the “Uztuqimachiliksanoat” Association. The committee considers the adoption of the draft resolution inappropriate,” the press service said.

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