August 24, 2007
Politics:
Builders of Toshguzar-Boysun-Qumqurgon railway line awarded
Economics:
China to issue USD 6.2m credit for reconstruction of Karakul pumping station
The optimization of tax burden in liberalizing and modernizing the national economy
The liquidity of liquidation
Foreign banks extend 1m euros to Ipak Yuli Bank
Society:
Samarkand, the shining face of earth
Uzbek Teachers of Russian Travel To Moscow
UNFPA, Health Ministry work on strengthening emergency obstetric care
POLITICS
BUILDERS OF TOSHGUZAR-BOYSUN-QUMQURGON RAILWAY LINE AWARDED
President of Uzbekistan Islam Karimov signed a decree on August 22, 2007 on awarding the participants of construction of the 223-km-long Toshguzar-Boysun-Qumqurgon railway line.
According to the document, almost 50 people received titles “Honorary builder of Uzbekistan” and “Honorary transport worker of Uzbekistan”, orders “Fidokorona khizmatlari uchun”, “Mehnat shuhrati” and “Dostlik”, and medals “Shuhrat”.
By another decree of the President, machinist of 166th machine station of Uzbekistan Railways company Khamza Mahkamov was awarded the title of the “Hero of Uzbekistan”.
ECONOMICS
CHINA TO ISSUE USD 6.2M CREDIT FOR RECONSTRUCTION OF KARAKUL PUMPING STATION
Ambassador of China to Uzbekistan Yuy Khunczun held negotiations with Minister of foreign economic relations, investments and trade of Uzbekistan Elyor Ganiyev on August 23 in Tashkent.
The sides considered issues of development and implementation of joint projects. They noted that relations between Uzbekistan and China were steadily developing in sociopolitical, economic and humanitarian fields.
The two officials signed Exchange notes between the governments of Uzbekistan and China, according to which China will issue an interest-free credit of USD 6.2 million for the project of reconstruction of Karakul district pumping station in Bukhara region.
Trade turnover between Uzbekistan and China comprised USD 698 million in 2006. In the first half of 2007, the figure increased by 92% against the same period of 2006.
THE OPTIMIZATION OF TAX BURDEN IN LIBERALIZING AND MODERNIZING THE NATIONAL ECONOMY
In liberalizing and modernizing the national economy, measures are taken to develop the tax system for the purpose of reducing the tax burden on various enterprises by unifying taxes having similar taxation basis, canceling most of benefits, cutting the number of taxes and reducing the rate of particular taxes, Uzbekistan today reported.
An analysis of international experience shows that the correlation between tax burden and GDP is different in developed countries: England - 51,2%, Germany - 56,5%, Japan - 36,1% and United State - 35,9%.
At present, the tax system of the Republic of Uzbekistan is developing on the basis of economic and social conditions. Here successful functioning of efficient tax system requires Uzbek authorities to optimize the taxation methods and reduce tax burden of various enterprises.
One of the main taxes of Uzbek tax system is income tax of juridical persons. A number of changes which have restructured the mechanism of calculating and imposing income tax in taxation of juridical persons’ incomes in functioning period have happened in recent years. The acting legislation of Uzbekistan ensures that the object of taxation of juridical persons’ incomes is the profit calculated as the difference between total revenues and deductions determined correspondingly with the Tax Code of the Republic of Uzbekistan. At that, tax rate has a decreasing tendency:
In 2004 the income tax rate of juridical persons went down 2% in comparison with that of 2003 and in 2005 5%, in 2006 8% and 2007- 10%.
Another basic tax of the Uzbek tax system is income tax of individuals. Lots of changes on elements of taxation have occurred in recent years in taxation of individuals’ incomes in functioning period:
In 2004, the income tax rate of individuals fell by 1% on income of 5 to 10 times the minimum salary in comparison with that of 2003 and 1% on income of more than 10 times of minimum salary and in 2005 2% on income of 5 to 10 times the minimum salary and 3% on income more than 10 times the minimum salary, in 2006 3% on income of 5 to 10 times the minimum salary and 4% on income of more than 10 times othe minimum salary and in 2007 5% on income of 5 to 10 times the minimum salary and 8% on income of more than 10 times the minimum salary.
At the same time, it should be stressed that when the income tax of juridical persons was introduced for the first time, its rate was 35% and as a result of step-by-step reforms in the tax legislation, it fell to 10% in 2007.
In the first half of 2006 the reduction of the tax burden increased companies’ financial resources by more than 126 billion soum. It was a significant source for increasing the investment, filling up their floating funds and increasing salaries.
Estimations show that measures of income tax will allow growing the part of incomes, restrained by companies, worth not less than 37 billion soum which can be invested in the modernization and technical re-equipment and expansion of their production and increase of their staff’s salary.
It should be noted that Uzbekistan take measures to develop its tax system for the purpose of cutting the tax burden on economic entities by reducing tax rates, optimizing the taxation basis and reducing the number of taxes.
Today the concept of tax policy of the country aims to develop industries and services and encourage various enterprises by renewing basic production funds and improving the quality of goods correspondingly with international standards.
In sum, we can note that a number of step-by-step measures are taken to reduce the tax burden in whole, in order to structure an optimal and rational efficient tax system in liberalizing and modernizing the Uzbek economy.
THE LIQUIDITY OF LIQUIDATION
The bankruptcy procedure turns into an effective mechanism of revival for many enterprises of Uzbekistan.
The State Committee of the Republic of Uzbekistan on Demonopolozation, Support of Competition and Entrepreneurship states that in six months this year around 78% of enterprises under sanation have improved the indicators of industrial and financial activity and they have mostly increased the average monthly output, Uzbekistan today reported.
The majority of large companies were restructured and decentralized in liberalizing and developing the economy. The decisive bankruptcy procedures were initiated in regard to 28 chronically unprofitable and unpromising and economically poor and 82 privatized inefficient companies. Their property was complexly sold to the potential investors.
It was noted that the regional program on restructuring and decentralizing 454 companies was implemented. As a result, the useless industries were replaced with 116 new enterprises which created around 10 thousand and restored around 2,6 thousand workplaces. Twenty idle enterprises were sold to new owners, imposing investment liability of around US$ 20 million. As a result of voluntary liquidation, 12 new companies were set up, and their investors intend to invest in renewing and expanding the production. As well as 18 enterprises are reconstructed and reequipped.
The State Committee on Demonopolozation, Support of Competition and Entrepreneurship has controlled the activity of monopolists for the purpose of preventing from unjustified and groundless growth of prices and supporting the private enterprise that guarantees to establish good competition for its rapid development. Special attention was paid to increase of efficiency and guarantee of systematic character of work on protecting consumer rights and regulating the advertising market.
The committee constantly monitors the procedure of selling goods in exchanges for the purpose of preventing the increase of prices for goods (service) of natural monopolies and monopolist enterprises and ensuring the equal access of entrepreneurs to high-liquidity goods and raw materials.
Basing on priorities pointed out by the Uzbek authorities, the advisory board of the State Committee on Demonopolozation, Support of Competition and Entrepreneurship has determined concrete tasks for the second half of 2007, developed an action plan and indicated the time of guaranteeing stable growth and modernizing the national economy and creating favorable conditions for dynamic development of small business and private enterprise, intensifying the activity of attracting foreign investment and deepening the reforms in the municipal economy.
FOREIGN BANKS EXTEND 1M EUROS TO IPAK YULI BANK
An agreement on trade financing has been reached between Ipak Yuli Bank, German Commerzbank AG and Austrian Raiffeisen Zentralbank Oesterreich AG, Uzreport.com Business Information Portal reported.
The extension of trade financing to the Uzbek bank is intended to develop trade and economic relations between the countries.
According to the terms of the agreement, Commerzbank and Raiffeisen Zentralbank Oesterreich will appropriate 500,000 euros each for the opening of import letters of credit and guarantees. The total sum extended to Ipak Yuli Bank thus comprises 1 million euros.
Ipak Yuli Bank has supported correspondent relations with Commerzbank since March 2003, and with Raiffeisen Zentralbank Oesterreich since December 2004.
SOCIETY
SAMARKAND, THE SHINING FACE OF EARTH
Samarkand, one of the world’s oldest cities, a peer of Babylon and Rome, the oasis of the Great Silk Road and capital of the great empire of the Temurids, is celebrating its 2750th anniversary on August 25, 2007. Situated on one of the crossroads of trade caravan routes which played an important role in economic relations between the East and West, Samarkand became a center of ancient civilizations and historical and cultural traditions of Central Asian peoples many centuries ago.
Today, amidst festive decorations, renewed and beautiful majestic madrasahs and mosques with sparkling blue domes, the city receives numerous guests from different parts of the world. They arrive here to participate in the celebrations and in the Fourth International Festival “Sharq taronalari” (Eastern melodies).
Poets and historians who were inspired by its beauty and originality have given Samarkand such magnificent names as “The Eden of the Ancient Orient”, “Precious Pearl of the Old East”, “the Rome of the East”. The city has a complicated and contradictory history whose pages are reflected in splendid architectural monuments which astonish people by virtue of their beauty and harmony of medieval architects. Today Samarkand is a museum city renowned for its unique constructions. The city is home to around 300 architectural and over 2000 archeological monuments here. It should be noted that world architecture knows of only three monuments, designed with unique relief decorations, and all of them are in Samarkand. It is the Bibi-khanum mosque, the Gur-Emir mausoleum, burial-vault of the Temurids, and Tilla-Kari madrasah.
Throughout its centuries-old history the city experienced various stages of development. During the years of Amir Temur and Temurids’ reign Samarkand became the world’s important socio-economic and scientific center of the Middle Ages. In the second half of the fifteenth century Mirzo Ulugbek laid foundations of an astronomic school and constructed a madrasah and observatory. A scientific establishment, the Academy of Ulugbek was formed around it. Here such well-known scholars as Giyosiddin Jamshid Koshy, Kozizoda Rumy and Ali Kushchi. The activities of Ulugbek Academy have received international recognition.
It is symbolic that this sacred place related to Ulugbek’s name, his madrasah hosted recently a plenary meeting of the largest forum of the year, international scientific conference on “Uzbekistan’s Contribution to the Development of Islamic Civilization”. Its participants viewed the sights of Samarkand, sacred places and complexes such as Imam al-Bukhary, Bibi-khanum, Shohi Zinda Hoji Akhror, Amir Temur’s mausoleum and Ulugbek’s observatory.
During the years of independence the historical fame of Samarkand has been restored and revived. Its architectural and historical monuments were included in the list of UNESCO’s world heritage sites. Hundreds of historical and architectural masterpieces have been reconstructed and restored such as the Registan ensemble, Ulugbek’s observatory, Ruhobod and Shohi Zinda mausoleums, Hoja Akhror and Hazrati Hizr mosques, and Imam al-Bukhary complex and a new mausoleum have been constructed in honor of Imam Moturidy.
Samarkand is a motherland of worldwide known scientists, thinkers, poets, musicians, artists and statesmen. The national creative traditions and music art developed here. The old sources tell us that the oldest music instrument of Central Asia was found in Samarkand. Therefore, it is quite symbolic to hold the “Sharq taronalari” music festival in this city, in one of the most ancient monuments, Registan complex. This music forum that brings together participants from more than 50 countries is the sixth one.
At the same time, Samarkand is active and vivid, and offers enough opportunities to be a growth locomotive in the modern world. Today the city’s development strategy is based on synthesis of a rich culture and up-to-date technologies. Owing to the work accomplished during the independence years under the leadership of President Islam Karimov, Samarkand has rationally and fundamentally changed. Many modern constructions, educational institutions, social and cultural establishments, lyceums, colleges and sports arenas have taken rise. To hold various political and social events of international value, sports competitions and big music festivals in Samarkand popularize the city. Specialists have worked out the main development plan of Samarkand for 2025. At present, wide-scale construction and reconstruction work which will completely change the view of Samarkand is being done under the plan.
All establishments of social infrastructure, transport communication, hotels, buildings of joint venture and private companies are built here. Today Samarkand is one of the largest industrial centers. At present the city has around six thousand economic institutions and over 90% of them represent the nongovernmental sector of economy.
The ancient and ever young Samarkand shows constant aspiration to progress. Restoration of national cultural values, aspiration to know the history and laying foundations for brilliant future have become cornerstones of Samarkand’s development in the modern period.
UZBEK TEACHERS OF RUSSIAN TRAVEL TO MOSCOW
On August 23 meeting with the teachers of Russian language and literature, as well as teachers of primary schools of Uzbekistan, who had a professional education funded by the federal budget of the Russian Federation at the vocational education courses in Moscow was held at the Russian center of science and culture in Tashkent, according to the Business Information Portal Uzreport.com.
As a part of developing cooperation in the sphere of public education between the Russian Federation and Republic of Uzbekistan and support of the National Program for developing the school education in the Republic of Uzbekistan in 2004-2009 each year 60 teachers of Russian language and literature at the Uzbek schools will go through training at the Russian centers of vocational education for the teaching cadres.
During their trip the teachers attended lectures on modern methods and technologies of teaching the Russian language and literature in schools, participated at the trainings on enhancing the pedagogical skills, visited open lessons at the Moscow schools, as well as were offered a cultural program and sightseeing around Moscow.
The selection of candidates from a number of best teachers has been accomplished by the Embassy of the Russian Federation in Tashkent, “Roszarubejcenter” Office in Uzbekistan on the recommendations by the Ministry of Public Education of the Republic of Uzbekistan, the Tashkent Union of Teachers of Russian language and literature, and the Republican Russian cultural center.
During the meeting the teachers spoke about their impressions on the trip and training. According to them, such experience is utterly important and useful. The said practice allows exchange work experiences not only with the Russian specialists, but also colleagues from other countries, get acquaint with the newest pedagogical technologies, training and methodical elaborations in the area of teaching the language and literature. Besides, it is undoubtedly serves the cause of developing the professional ties, strengthening friendship and mutual understanding between the people of Russia and Uzbekistan.
UNFPA, HEALTH MINISTRY WORK ON STRENGTHENING EMERGENCY OBSTETRIC CARE
The Ministry of Health of Uzbekistan with financial and technical support of the United Nations Population Fund (UNFPA) in Uzbekistan on August 20 started the series of trainings on building up and upgrading skills of health care providers involved in emergency obstetric care.
This training is an integral part of the joint initiative of the Ministry of Health and UNFPA on strengthening the system of emergency obstetric care in Andijan region.
The training takes place in the Republic Perinatal Centre in Tashkent and in the Andijan Region Maternity Complex. It is planned that more than 250 health care providers will be trained in the course of the training. This comprises over 66% of the total amount of health care providers in the province working in the area of emergency obstetric care.
The training courses are delivered by national trainers prepared by the international consultant during the training of trainers (ToT) that was jointly organized by UNFPA and the Ministry of Health in July 2007. They aim at discussing ways of improving the management of obstetrical emergencies which may help standardize the skills of practicing maternity care providers and review the importance of utilizing regional maternity care services.
Prior to starting these training programmes that are part of the project on improving the system of emergency obstetric care in Andijan province, UNFPA and the Ministry of Health held a two-day orientation meeting on emergency obstetric care and contraceptives logistics management information system (LMIS) in Andijan on August 16-17, 2007. Health care system representatives gathered in the meeting to discuss the current issues in the area of emergency obstetric care, perspectives for further cooperation on EMOC and LMIS, and launch the training programmes for health care providers from Andijan province.
UNFPA believes that this activity is a significant contribution in the efforts of the Ministry of Health on further strengthening maternal health in the country and achieving Millennium Development Goal 5.