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Shavkat Mirziyoyev criticized the implementation of the plan to reduce exports by 88%

President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on February 21 devoted to the analysis of the ongoing work to reduce the volume of imports and expand the production of localized products, and to determine the most important tasks in this direction.

This was reported by the Press Service of the President of the Republic of Uzbekistan.
Earlier, on April 19, 2017, a videoconference meeting took place on these issues, it identified specific measures to optimize the volume and range of imports through the expansion of localization. In accordance with them, a number of works were carried out last year. In particular, within the framework of the Localization Program, production was increased by 9.9 trillion soums. The products were exported for $ 512 million or 20 percent more than in 2016. The output of 100 new types of products was mastered, imports in the basic industries decreased by $ 353 million.

The head of our state, having deeply analyzed the implementation of the Localization Program and the import reduction plan, criticized the shortcomings. It is indicated that in 2017, 176 out of 948 localization projects were not started production, production forecasts for 218 projects were not fulfilled.

Thus, according to 77 projects of the Agency for the Development of the Pharmaceutical Industry, production was not provided for 206 billion soums.

12 projects of “Uzbekozikovkatholding” JSC, 17 projects of "Uzavtosanoat" JSC, 65 projects in the city of Tashkent and the same number in the Tashkent region have not been implemented at the proper level.

The fact that the import reduction plan was fulfilled by 88 percent was criticized.

The meeting noted an increase in imports of a number of economic associations of goods, the production of which has already been mastered in our country. In 2017, such products were imported at $ 185 million, in January this year - $ 65 million.
Last year, Uztukimachiliksanoat Association imported LED lamps, spotlights and other goods worth $ 9 million, Uzbekneftegaz - steel pipes, cables, heating boilers, electrodes for $ 2 million, Uzbekenergo - steel wires and cars for 800 thousand dollars.
The meeting discussed the ongoing work on the localization of equipment and components in these and other industries.
For 10-15 years, we are talking about the organization in our country of the production of equipment necessary for the branches and wearing parts. But initiatives and practical actions are not observed. The leaders of a number of spheres do not think about localization, choose the easy way and import the necessary products from abroad. This takes currency funds, which are difficult to obtain in the current conditions of competition, said the head of our state.

Also, the effectiveness of tax and customs benefits provided to stimulate localization was analyzed.

As a result of unreasonable collection of customs payments for certain types of goods, the price of products produced in our country is higher than imported analogues. For example, equipment imported for the textile industry is exempt from all customs duties. However, the import of components for the production of such equipment is subject to a 20 percent value-added tax.
The same inconsistencies are observed for tax benefits. In this regard, since April 1, 2018, the benefits of localization projects will be terminated. Various unscrupulous enterprises will be deprived of the possibility of avoiding taxes through participation in the Localization Program. The program will include only projects that are really necessary for the economy, their implementation will be taken under strict control.

The President determined the actual tasks to eliminate existing deficiencies in the field, the development of localization.
The ministries of economy and foreign trade are instructed to form a new, comprehensively elaborated Program of localization. It is pointed out that it is necessary to make concrete proposals on the abolition of customs payments for the import of certain components that cannot be localized at a competitive price.

Instructions are given on the organization of production of equipment for large enterprises and small businesses, wearing parts, stamped products and small hydro generators.

The task was set up to form an Interdepartmental Working Group on the organization of new localization capacities on the basis of a system analysis of the import volumes and structure, comprising of heads and responsible employees of the Ministry of Foreign Trade, the State Customs Committee, the Ministry of Finance, the Central Bank and economic associations.
It is entrusted to optimize the rates of customs payments for certain goods to support domestic enterprises.

Our main goal is to ensure the development of the country, the welfare of the people, - said Shavkat Mirziyoyev. To do this, first of all, our economy must be competitive, and products must be produced in our country. All leaders must draw the appropriate conclusions and radically change their attitude towards the fulfillment of the tasks assigned.
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