Uzbekistan Introduces Measures to Support Catering and Hospitality Industry

 In a recent open dialogue with entrepreneurs, Uzbek President Shavkat Mirziyoyev revealed a series of measures to support food and drink venues in the country. From January 1, catering businesses will be eligible to receive a portion of the VAT in cashback.

Under the new scheme, catering enterprises that process 60% of their monthly turnover through non-cash transactions will receive an immediate 40% VAT refund after payment. If the non-cash turnover exceeds 60%, the cashback will be reduced to 20%.
The president also announced a half-cut in income tax for restaurants and cafes that are VAT payers. Furthermore, starting from December 1, the importation of agricultural products for cash transactions will no longer require extensive documentation.
To further support the industry, new regulations will allow restaurants and cafes to expand their outdoor seating area during the spring and summer. Additionally, these businesses will have the flexibility to establish short-term simplified work contracts with their employees.
From October 1, hotels and tour operators will receive a 20% cashback on the VAT paid to boost tourism.
These measures are part of a broader effort to create a more conducive environment for entrepreneurs. In the past two years, 13 exclusive market access rights have been abolished, and seven more are planned to be eliminated, aiming to open the market to over 1,500 entrepreneurs.
Moreover, all licensed enterprises will now manage the certification of hotel activities, streamlining the process.

 In addition to these measures, the government plans to construct a new gastronomic street near Yangi Sergeli Park in Tashkent, underscoring the government’s commitment to supporting the catering industry and enhancing the overall business environment in Uzbekistan.