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Livestock and poultry farmers in Uzbekistan will receive a 50% VAT refund
On January 30, President of Uzbekistan Shavkat Mirziyoyev signed a resolution to support livestock and poultry farming and create high added value in these areas.
In 2025, it is planned to produce about 3.19 million tons of livestock meat, 1 million tons of poultry meat, 13.12 million tons of milk, and 10.5 billion eggs. The forecast for poultry exports for this year is $180 million, including poultry meat worth $95 million and eggs worth $69 million.
In addition, it is planned to provide employment for 1 million people in the poultry sector, mainly due to the establishment of cooperation between poultry farms and the population.
From April 1, 2025 to January 1, 2028, a mechanism for the return (cashback) of 50% of the value-added tax will be introduced for livestock and poultry farms whose revenue from the sale of meat, milk, eggs and poultry meat is at least 90% of their income.
In addition, by February 1, 2025, $50 million will be allocated from the Fund for Reconstruction and Development of Uzbekistan (the country's sovereign fund) to increase the authorized capital of Microcreditbank. These funds will be used to finance cooperation with households in the poultry sector as part of the Poultry Farming - Source of Income project, designed to create 1 million jobs.
As part of this project, financial recovery of low-profit enterprises is planned. It is also planned to merge farms on the balance sheet of banks with large enterprises, create a system of cooperation between small producers and the processing industry, and launch new projects.
Also, until January 1, 2028, the customs duty on imported vehicles intended for the needs of poultry breeding enterprises will be reduced. The rate for the import of trucks weighing 5-20 tons will be 5% of the cost plus $ 1.2 per cubic centimeter of the engine instead of the current 70% and $ 3.
To support breeding farms, tax breaks have been extended until 2028. Until then, they will continue to pay a 50% reduced rate on profit, property, land and water resources.
In addition, the fee for services for registering veterinary drugs and issuing relevant certificates upon their import is canceled. This applies to drugs for fertilizing livestock embryos, including cattle, goats, sheep and breeding horses. Diagnostic test kits used in state veterinary laboratory tests will also be free.
The presidential decree instructs to attract $50 million from international donors to prevent pasture degradation and support the karakul sheep breeding industry.
It is planned to adopt a program for restoring pastures and creating irrigation structures (wells) on them in 2025. On lands for grazing cattle, determine the obligations of the entities to which the wells are assigned, and also install water meters and solar panels for electricity supply.
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