Uzbekistan will be granted a transition period upon joining the World Trade Organization, unveiled the Tax Committee Deputy Chairman Mubin Mirzaev at Debate Hall platform.
He named three main changes that need to be made to the country's legislation to join the WTO.
"After joining the WTO, VAT rates should be the same for both imports and the domestic market. If there is VAT on imports, then there should be no waiver on the domestic market, that is, VAT should be paid. The same will be with excise tax," he explained.
While, customs duties should be at the same level as other WTO member countries within the framework of agreements.
"For small businesses, this is good for competition, generally convenient for doing business. The changes can only negatively affect large enterprises, which will have their excise tax benefits and other benefits to encourage production canceled," said the Deputy Head of the Tax Committee.
Mubin Mirzayev pointed out that a 2-3-year transition period will be provided in agreement with other countries to mitigate the negative consequences for these enterprises.
Uzbekistan's accession to the WTO will benefit in a number of areas, he said. Today, other countries impose higher customs duties on Uzbekistan’s exports.
"These processes will be simplified. More markets will open for our goods in other countries, and it will be possible to sell them without problems. However, accession to the WTO will have a negative impact on some industries, and a positive impact on others, but overall, if we take GDP, it will have a positive impact on production volumes and overall growth," he emphasized.
At a meeting with business leaders in August, President Shavkat Mirziyoyev called accession to the WTO "a thoughtful and far-sighted choice, as well as an integral part of reforms. Previously, the economy "to some extent needed protection," but if we continue down this path, the country's opportunities will be limited, he said.
