Entrepreneurs’ sustainability rating will be introduced in Uzbekistan
Uzbek President Shavkat Mirziyoyev has recently acquainted himself with a presentation on implementing an entrepreneurship sustainability rating. Entrepreneurship development is a fundamental focus of the country’s economic policy, with continuous improvements to the business environment. Under the Year of Support for Youth and Business theme, efforts are being made to create more opportunities for entrepreneurs, aiming to employ 5 million people. For this purpose, an allocation of 83 trillion soums and 275 million dollars in loans and subsidies is planned.
Features
The proposed rating system is designed to incentivize entrepreneurial activity further. Its significance was discussed during an open dialogue between the head of state and entrepreneurs, leading to the development of criteria and principles for this rating. The rating will categorize entrepreneurs into four groups based on 23 criteria: business longevity, profitability, payment discipline, employment participation, and salary levels. Data from tax, justice, and judicial authorities will form the rating, allowing entrepreneurs to access real-time information about their position and rating.
Entrepreneurs with high ratings will benefit from various advantages, such as canceling tax inspections, immediate value-added tax refunds, and expedited overpayment reimbursements for other taxes within three days. Additionally, customs and tax authorities will be able to offset VAT on imports and sales of goods, and the payment term for state property and land plots acquired in auctions will be extended from 3 to 5 years. Furthermore, entrepreneurs who make a lump-sum down payment of at least 15 percent will not be charged annual interest on the remaining amount.
This rating system is also significant because it replaces the evaluation of entrepreneurs by tax authorities with an electronic system. In the future, subsidies, benefits, and preferences will be granted based on the rating, motivating entrepreneurs to strive for higher ratings and avail themselves of more opportunities. Moreover, the rating will serve as a protective measure, providing entrepreneurs with reliable information about their partners and alerting them to the risks of dubious transactions and unfair competition. This will contribute to a reduction in the size of the “shadow” economy.
During discussions, the president emphasized the need for a comprehensive system examination to ensure efficiency and objectivity. He highlighted that the conditions for businesses are being improved based on the suggestions of entrepreneurs. A recent decree has already abolished 16 licenses and 34 types of reporting. The entrepreneurial class is becoming a driving force in society, with young people increasingly inclined towards entrepreneurship.
The rating system promotes law-abidingness, discipline, and initiative among entrepreneurs. The Public Council for Support of Entrepreneurship is expected to play a crucial role in the implementation and effectiveness of the rating.
The launch of the “Rating of Entrepreneurs’ Sustainability” platform is scheduled for March 1st. The Chamber of Commerce and Industry will engage in comprehensive efforts to educate entrepreneurs about the capabilities of the rating system. A transparent system for allocating subsidies, benefits, and preferences will also be established. Furthermore, the importance of targeted support for entrepreneurs with low ratings, assisting them in revitalizing and restoring their activities, was emphasized.
