Uzbekistan to join WTO with 2-3 year transition period to ease economic shift

Speaking at the "I am an Entrepreneur" open session at Debate Hall, Mirzaev detailed the key legislative changes that will accompany Uzbekistan’s accession to the WTO. One of the major shifts will be the equalization of VAT and excise tax rates for both domestic markets and imports. Additionally, the preferential tax rates and other benefits currently available to local enterprises will be phased out. At the same time, there will be no new tax advantages for imports. Customs duties will be set according to agreements with other WTO member states.

"For small businesses, this is a positive change — it enhances competition and generally facilitates doing business," noted Mirzaev. However, he acknowledged that large enterprises may face challenges as a result of the reforms.

The transition period is designed to soften the impact of removing tax benefits, which were originally introduced to support domestic production. Depending on negotiations with other countries, this period will last between two and three years, according to Mirzaev.

While the process of joining the WTO will present challenges, including increased competition, Mirzaev emphasized the benefits it will bring. Currently, Uzbekistan's export goods are subject to high tariffs, which limit the country's ability to expand its market reach. WTO membership will help reduce these barriers, creating new opportunities for Uzbek exports.

"Accession will simplify the task of exporting our goods. In other words, new markets will open for Uzbek products, allowing for more seamless trade," said Mirzaev.

The Deputy Head of the Tax Committee also pointed out that while the reforms may benefit some industries and challenge others, the overall impact on the economy is expected to be positive.

President Shavkat Mirziyoyev, in his August dialogue with business leaders, highlighted WTO membership as a crucial part of Uzbekistan’s reform agenda. He stressed that protectionist policies are limiting the country’s potential for growth and that WTO accession is a key step toward economic progress.