The Legislative Chamber will consider amendments extending VAT waivers for a number of food products, announced the MP of UzLiDeP Doniyor Ganiev.
From the beginning of the year until April 30, there is a zero VAT rate on the import of vegetable oil, sunflower and flax seeds and soybeans, as well as on the turnover for the production and (or) sale of vegetable oil (except cotton). During this period, the sale of meat (beef, lamb, chicken), live animals (cattle and poultry) and products of their slaughter, potatoes and frozen fish, as well as their import into the territory of Uzbekistan, were also exempted from VAT.
The amendments proposed to extend these waivers (excluding fish and chicken) until December 31, 2022.
The global economy has entered its worst price crisis since the 1970s, World Bank experts said in a new report on the outlook for commodity markets. The bank predicts that due to the war in Ukraine, food prices around the world are expected to rise to a record level over the past 50 years. Considering that more than 60% of the global demand for vegetable oil is provided by exports from Ukraine and Russia, the price of vegetable oil on world markets is forecast to rise by almost 30% year on year.
While, about half of vegetable oil consumption in Uzbekistan is covered by imports. Under such conditions, any fluctuations in the world market affect prices in the domestic market.
