June 26, 2009
Politics:
Legislative Chamber approves several laws
Legislative Chamber discusses Yekaterinburg SCO summit
Uzbek law enforcement bodies destroy 1.3 tonnes of drugs
Economics:
New refrigerators for the market
Fiscal policy collaboration broadening
Rating as confirmation of stability
Society:
Uzbekistan introduces biometric passports
Forum on breast cancer to be held in Uzbek capital
POLICY
LEGISLATIVE CHAMBER APPROVES SEVERAL LAWS
Legislative Chamber of Oliy Majlis of Uzbekistan approved several laws at its session, which was held on June 24, 2009.
In particular, MPs approve draft law "On fire security", which regulates relations on ensuring fire security. The law will be directed to Senate of Oliy Majlis of Uzbekistan for approval.
Parliamentarians also discussed draft law "On electricity", which will regulate relations on production, transfer, distribution and consumption of electricity. After the discussions, MPs approved the law with proposals, directed to improve some norms of the law.
The chamber members also approved the law "On introduction of changes to article 185/2 of Criminal Code of Uzbekistan and article 101 of Code of Administrative Responsibility of Uzbekistan". The law envisages responsibility for unauthorized connection to electricity, heating and water networks. The law will be directed to the Senate for approval.
Draft law "On introduction of changes and amendments to the Law of Uzbekistan "On medical products and pharmaceutical activity" and draft law "On introduction of changes and amendments to some legislative acts of Uzbekistan" were also considered. The draft law was developed to strengthen fight against forged and low quality medical products, as well as illegal copies of medical goods. The law was approved in the first reading.
MPs discussed draft law "On introduction of changes and amendments to article 256 of Tax Code of Uzbekistan", which sets new order of royalty payment for natural gas, oil and gas condensate on projects, realized with product-sharing agreements. The law was passed.
Legislative Chamber considered law "On abandoning the Law of Uzbekistan "On property in Uzbekistan" and "On rent". The law abandoned as it outdated and do not meets modern requirements. The law was passed.
MPs passed the law "On introduction of changes to some legislative acts of Uzbekistan" in the first reading, which envisages unification of terms in Law "On general military obligation and military service" and Law "On state border of Uzbekistan".
LEGISLATIVE CHAMBER DISCUSSES YEKATERINBURG SCO SUMMIT
Legislative Chamber of Oliy Majlis of Uzbekistan hosted a meeting to discuss results of the SCO summit in Yekaterinburg, Russia, which was held on 15-16 June. The meeting was initiated by People's Democratic Party of Uzbekistan.
Uzbek President Islam Karimov positively evaluated the SCO activity and pointed out to its role and importance in solving regional and global security problems. Uzbek leader proposed to further expansion and strengthening of fruitful cooperation within the organization, support of peace and stability in the region, solving economic problems and overcoming negative consequences of financial crisis.
Speaking about situation in Afghanistan, the Uzbek head underlined to create 6+3 Contact Group under the UN aegis to solve Afghan problem.
Legislative Chamber adopted corresponding resolution, directed to assistance of practical realization of initiatives of Uzbekistan and holding of effective realization of Uzbekistan's chairmanship.
UZBEK LAW ENFORCEMENT BODIES DESTROY 1.3 TONNES OF DRUGS
Law enforcement bodies of Uzbekistan destroyed 1,355 kg of drugs, Uzreport Information Portal reported quoting State Commission on Drug Control of Uzbekistan.
The report said 975 kg of heroin, 270.5 kg of opium, 88 kg of marihuana, 16 kg of hashish, as well as large number of poppy straw, hemp and psychotropic means were destroyed.
Uzbekistan destroyed over 14 tonnes of drugs in 1994, which is the largest volume for now. Since that period, the country burnt 43.77 tonnes of drugs.
Uzbekistan revealed 10,200 drug related crimes and detained 3,550 kg of drugs, including 1,471 kg of heroin, 1,062 kg of opium, 810 kg of marihuana, and others.
ECONOMY
NEW REFRIGERATORS FOR THE MARKET
The South Korean LG Electronics to launch production of refrigerators at the Samarkand-based Sino this year.
The memorandum for organizing the refrigerators production at Sino has been signed between Uzeltehsanoat association and LG Electronics.
Initially, it is projected to have output about 50 000 refrigerators a year at Sino. Their assembling from Korean parts can be started as early as this year.
The Sino factory is an open joint stock company with a 25% stake of the state.
FISCAL POLICY COLLABORATION BROADENING
International experts, representatives of the Agency for Technical Cooperation and Development of France Guy Mogier and Paul Touzet visited Tashkent.
Their visit was organized by a joint project of the Ministry of Finance of the Republic of Uzbekistan and UNDP Project “Public Finance Reform in Uzbekistan” with the support of the Agency for Technical Cooperation and Development of France.
Guy Mogier and Paul Touzet held a meeting with officers of the State Tax Committee of the Republic of Uzbekistan for exchanging experience on improvement of the legislation in tax control and tax administration.
During the meeting they discussed issues of organizing fiscal administration, process of adaptation of the activity of tax services to taxpayers’ needs, classification of taxpayers, methods of tax control. Special attention was given to the optimization of functions of fiscal administration and to the objectives of tax authorities in conditions of overcoming the consequences of the global financial and economic crisis.
Within the visit, the international consultants conducted a training seminar for officers of the Ministry of Finance, State Tax Committee, taxation experts as well as for teachers of universities for acquainting them with the taxation practice of legal entities in France. The participants of the seminar learned about particularities of the Value Added Tax and the income tax for commercial organizations.
During the seminar, participants discussed the determination of the base of the income tax and the VAT, deductions stipulated by the legislation, due dates and amounts of advance payment on these taxes. In addition, they discussed issues concerning taxation of associations and other joint ventures, specific spheres of production, distribution of taxes among a head company and its branches, transfer of losses, investment deduction etc.
The information obtained during the seminar on the taxation practice of legal entities in France as well as the recommendations worked out within the meeting will be employed for further improvement of the tax legislation, particularly, concerning the VAT and taxation of incomes of legal entities in Uzbekistan.
RATING AS CONFIRMATION OF STABILITY
State joint stock commercial bank Asaka got international ratings from the rating agency Moody’s.
The bank was conferred the rating of financial stability “E+”, the long-term and short-term ratings of deposits in national currency “B1/Not Prime”, as well as the long-term and short-term ratings of deposits in foreign currency “B3/Not Prime”. All the ratings have stable outlook.
It should be noted that in early June this year the Islamic Corporation for the Development of the Private Sector (ICDPS) and Asakabank signed an agreement to provide financing line at the rate of $15 mln. This also proved the current financial institutions as a reliable and creditworthy partner. The provided funds will be directed toward the development of private sector and financing small businesses in the Republic of Uzbekistan.
Currently, Asakabank is considered to be the second largest bank of Uzbekistan on main financial indices. One of the core orientations of its activity is crediting enterprises of automobile sector.
The banking system of Uzbekistan has a considerable growth potential in future, especially in the development of services for small and entrepreneurial businesses, as well as retail sales segment, believe Moody’s experts.
At present, Moody’s ratings are also given to six more banks of Uzbekistan – the National Bank for Foreign Economic Activity, Qishloq Qurilish Bank, Ipoteka Bank, Credit-Standard, Turon Bank and Aloqa Bank. All the ratings have stable outlook.
SOCIETY
UZBEKISTAN INTRODUCES BIOMETRIC PASSPORTS
Uzbek President Islam Karimov signed a decree to introduce biometric passports in Uzbekistan from 1 January 2010.
The decree said biometric passports are introduced in line with the requirements of the International Civil Aviation Organization (ICAO). ICAO entrusted member states to introduce biometric passports by 2010.
The document said that biometric passports will be introduced in several stages and the government will create special body, which will gather information on passport holders.
The decree said employees of ministries and state bodies of Uzbekistan and individuals, traveling abroad, as well as citizens, who are receiving new passports, will get biometric passports in the first stage (in 2010).
All citizens of Uzbekistan will receive new passports in the second stage (2010-2015).
The document also included measures on creating necessary infrastructure for issuing biometric passports and storing biometric information of citizens.
FORUM ON BREAST CANCER TO BE HELD IN UZBEK CAPITAL
International Forum "Medical aspects and role of public organizations in solving problems of breast cancer" will be held in Tashkent, Uzbekistan, on 30 June.
The event was organized by Ministry of Health of Uzbekistan, Jenskoye Sobraniya and Community of Women with breast cancer, Social Initiatives Support Fund, National Oncological Scientific Center.
Representatives of various organizations from Austria, France, Switzerland, Germany, Israel, Russia, Turkey and the USA will participate at the event, the organizers said.
After the conference, the opening ceremony of the fourth city hospital of infectious diseases will be opened. The hospital was fully repaid at assistance of Mehr Nuri Fund.