The Ministry of Investments, Industry and Trade of Uzbekistan has presented a draft presidential decree proposing a revision of existing customs privileges and zero-rate import duties for various food and consumer goods. The document was discussed on October 27 at a meeting of the Public Council for Supporting Entrepreneurship under the President, drawing significant skepticism and debate among independent experts. The initiative is officially framed as part of ongoing market adjustments, though analysts point to potential negative economic consequences for regular consumers.
Key Takeaways: Currently, zero-rate import duties apply to 56 product categories, expiring on January 1, 2027. The ministry has proposed extending these privileges for 47 positions until January 1, 2028, while planning to phase out zero rates entirely for nine specific commodity groups.
During the presentation, ministry representative Sarvarhodja Khankhodjaev claimed that the authorities are not canceling current preferences prematurely, but rather deciding against their further extension once the designated terms expire. He asserted that the proposals supposedly account for domestic production capacities, output volumes, and internal market saturation regarding dairy goods, yogurt, and cheese. However, council members openly questioned whether such superficial analysis could justify changing tariff policies that directly affect the population.
The meeting exposed a distinct lack of comprehensive economic modeling, as officials admitted that detailed pricing and domestic consumption analyses were absent from the presented materials, though they promised to supply additional data later. The presiding officials questioned whether reported production figures align with actual household needs and how the reinstatement of heavy import tariffs might pressure consumer budgets against the backdrop of rising inflation.
Prominent economist Otabek Bakirov strongly opposed the removal of goods from the zero-duty list, arguing that the decision lacks sound financial backing and that prices for several targeted items have already outpaced general inflation. He warned that once privileges expire, import duties will jump to 15% for cheese and suzma, and up to 20% for yogurt, apples, and pears. Bakirov cautioned that such restrictive measures would severely limit the affordability of nutritional goods that ordinary households are only recently beginning to incorporate regularly into their diets.
Source: www.gazeta.uz