This was reported by the Press Service of the President of the Republic of Uzbekistan. 

Earlier, on April 19, 2017, a meeting was held on these issues, where specific measures were identified on optimizing the volume and range of imports through expansion of localization. In accordance with them, a number of activities were carried out last year. 

In particular, within the framework of the Localization Program, production to 9,9 trillion sums has been produced. Products for $512 million or 20 percent more than in 2016 were exported. The output of 100 new types of products was mastered, imports in basic industries decreased by $353 million. 

The Head of the state, considering the implementation of the Localization Program and the import reduction plan, criticized the shortcomings. It was noted that in 2017, production did not start on 176 out of 948 localization projects, production forecasts on 218 projects was not fulfilled. 

Thus, according to 77 projects of the Agency for Development of Pharmaceutical Industry, production was not provided for 206 billion sums. 12 projects of JSC “Uzbekozikovkatholding” (food industry), 17 projects of JSC “Uzavtosanoat” (automobile industry), 65 projects in the city of Tashkent and the same number in Tashkent region have not been implemented at the proper level. 

The fact that the import reduction plan for 1 billion 81 million dollars was executed by 88 percent was criticized.

At the meeting devoted to the analysis of the ongoing activities on reducing the volume of imports and expanding production of localized products, an increase in imports of a number of economic associations of goods, production of which has already been mastered in Uzbekistan was noted. In 2017, such products were imported for $185 million, in January this year – $65 million.

Last year, “Uztukimachiliksanoat” Association (textile industry) imported LED lamps, floodlights and other goods worth $9 million, NHC “Uzbekneftgaz” (oil and gas industry) – steel pipes, cables, heating boilers, electrodes for $2 million, JSC “Uzbekenergo” (energy industry) – steel wires and cars for 800 thousand dollars. 

At the meeting, ongoing activities on localization of equipment and components in these and other industries were discussed. 

For 10-15 years, we are talking about organizing in our country of equipment production and wear parts necessary for branches. But there are no initiatives and practical actions. Leaders of a number of spheres do not think about localization, choose the easy way and import necessary products from abroad. This takes currency funds, which are difficult to obtain in current conditions of competition, said President Shavkat Mirziyoyev.

The effectiveness of tax and customs benefits provided for stimulating localization was considered at the meeting held by the President of the Republic of Uzbekistan Shavkat Mirziyoyev. 

As a result of unreasonable collection of customs payments for certain types of goods, the price of products produced in Uzbekistan is higher than imported analogues. For example, equipment imported for the textile industry is exempt from all customs duties. However, the import of components for production of such equipment is subject to a 20 percent value-added tax. 

The same inconsistencies are also observed for tax benefits. In this regard, from April 1, 2018, the benefits for localization projects will be terminated. Various unscrupulous enterprises will be deprived of the possibility of avoiding taxes through participation in the Localization Program. The program will include only projects that are really necessary for the economy, their implementation will be taken under strict control. 

The President determined current tasks on eliminating existing deficiencies in the sphere, development of localization. 

The ministries of economy and foreign trade were instructed to form a new, comprehensively elaborated Localization Program. Importance of introducing concrete proposals on abolition of customs payments for the import of certain components that cannot be localized at a competitive price was noted. 

Instructions were given on organization of production of equipment for large enterprises and small business, wear parts, stamped products and small hydro generators. 

The task was set up on establishing an Interdepartmental Working Group on organization of new localization capacities on the basis of a systemic analysis of the import volumes and structure, comprising of heads and responsible employees of the Ministry of Foreign Trade, the State Customs Committee, the Ministry of Finance, the Central Bank and economic associations. 

Instructions were given on optimizing the rates of customs payments on certain goods for supporting domestic enterprises. 

Our main goal is to ensure development of the country, the welfare of people, said Shavkat Mirziyoyev. To do this, first of all, our economy must be competitive, and products must be produced in our country. All leaders must draw appropriate conclusions and radically change their attitude towards the execution of the assigned tasks.

Source: UzA