BAKU, Azerbaijan, Apr. 26
By Klavdiya Romakayeva - Trend:
Uzbekistan has lifted the value added tax on import of vegetable oil, sunflower and flax seeds, as well as soybeans from May 1 to December 31, 2021, Trend reports referring to the press service of the Senate of Oliy Majlis (Parliament) of Uzbekistan.
On April 24, 2021, the work of the fourteenth plenary session of the Senate of the Oliy Majlis (Parliament) of Uzbekistan continued in Tashkent, during which it was noted that negative estimates for sunflower seeds and oil that are emerging in foreign markets have an impact on pricing and social status in the domestic market.
This is also seen from the fact that about half of the average annual demand for vegetable oil in the consumer market in the amount of 460,000 tons is covered by imports.
In March, the average prices for vegetable oil in the world went up by 86 percent in relation to the corresponding period of the last year, and compared with the beginning of this year prices for vegetable oil increased by 21 percent.
According to the information, 70 percent of sunflower oil in Uzbekistan is imported from Russia. Thus, if the cost of a ton of sunflower oil in Russia in December 2020 averaged $900, then in March 2021 it rose to $1,250.
At the same time, Russia plans to introduce from September 1 this year a customs duty on the export of sunflower oil for a period of one year.
Last year the price of sunflower oil in Uzbekistan increased by an average of 38 percent.
In order to prevent a sharp rise in prices for vegetable oil in the domestic market of Uzbekistan, the Law amends the Tax Code, according to which the following are exempt from value added tax from May 1 to December 31, 2021: import of vegetable oil, sunflower and flax seeds, as well as soybeans; turnover for the production and (or) sale of vegetable oil.
In addition, from May 1 to December 31, 2021, export customs duties will be introduced on sunflower seeds and raw cotton, sunflower oil and cotton-oil products.
It was noted that the law will come into force after the president signs it.
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