Over the past week, average wholesale prices for potatoes in Uzbekistan increased by 43%.
To contain the rise in food prices, this week the country’s parliamentary upper house approved the elimination of VAT on imports and sales of a number of food products, including potatoes, EastFruit reports.
On October 14-21, 2021, the average wholesale prices for potatoes in Uzbekistan increased from 3,500 to 5,000 soums/kg (by 43%). Current price levels are 39% higher compared to the same date in 2020 and 2.2 times higher than the same date in 2019.
As of October 22, 2021, retail prices for tubers in the capital’s supermarkets range from 5,900 to 7,000 soums/kg.
As a factor restraining further growth in potatoe prices in the domestic market, on October 21, the Senate of Oliy Majlis approved a law “On amendments to the Tax Code”, providing for the zeroing of VAT on the import and sale of potatoes, meat products, frozen fish and live animals. According to this document, from October 10 to December 31, 2021, imports and sales of the above goods are exempt from VAT.
It also became known that due to the zeroing of VAT on potato imports, the country’s budget will lose 76.5 billion soums, and 30 billion soums on sales turnover. In other words, for only one product – potatoes, these measures cost the country’s budget $10 million.
“It should be noted that this is not the first time Uzbekistan has introduced such a measure of restraining the growth of potato prices. From February 20 to December 31, 2018, the import of these products was also exempt from VAT, and the VAT exemption for wholesale and retail sales of locally produced potatoes is applied from December 31, 2018,” the conclusion says.
