Pension Digitalization, Green Certificates, and Regulatory Sandbox for Investors: What Will Change from October 1st?

From October 1, a number of important legislative changes will come into force in Uzbekistan. NOVA24 editorial staff has traditionally prepared a review of the most significant of them.

Scooter and moped rights

Driving mopeds and scooters is permitted only after state registration and with an “A” category driver’s license. The rule will affect vehicles that are in operation and have an engine working volume from 25 cm³ to 50 cm³ inclusive, as well as vehicles with an electric motor power from 0.25 kW to 4 kW inclusive and a design speed from 25 to 50 km/h inclusive.

“Beautiful” numbers

Uzbekistan will stop selling “beautiful” numbers at auctions. Instead, license plates with custom combinations of letters and numbers will be issued to individuals and organizations based on electronic applications, and unsold combinations will be distributed among drivers based on their category. Thus, license plates of categories 1-3 will be sold for a single increased tariff through the Uzavtomotobelgi enterprise, and license plates of categories 4-6 will be issued according to the current procedure without an increased tariff.

Judges’ Academy

A Justice Academy will appear in Uzbekistan, where future judges will be trained and professional retraining courses will be conducted. Training will be conducted for six months on the basis of a state grant in judicial specialties. At the same time, candidates retain their position at their main place of work, and a stipend is organized in the amount of the monthly payroll fund for a judge’s assistant.

New investment methods

In the country, the use of investment platforms in the special legal regime “Regulatory Sandbox” will be permitted for one year in the following areas:

• when placing and selling securities;
• when financing venture and mutual funds;
• when making a contribution to limited partnerships.

At the same time, investments made through such platforms will be confirmed by digital electronic certificates and provided on behalf of the person attracting the investment.

Ore extraction loosening

In the country, business entities that organize the processing of mineral deposits using the open method will be able to pay the amount of the permit for the right to use subsoil plots obtained at the auction in installments.

State land lease

Entrepreneurs will be able to lease plots adjacent to their buildings and structures, including land permanently owned by government agencies. The changes will not only affect the territory of educational and medical institutions. In this case, the lease will be carried out:

• without an auction — directly, if the land borders the entrepreneur’s facility;
• for a period of one year with the possibility of extension;
• with a rent of up to 3 times the land tax rate;
• on the electronic system for registering contracts, controlled by the State Tax Committee.

Fight against business trips

The authorities will maintain records and analyze officials’ foreign and domestic business trips through a unified “Xizmat safari” module within the “hrm.argos.uz” electronic system. At the same time, it will be possible to monitor the plans and results of business trips, geography, number of employees, and expenses online.

In addition, the authorities plan to monitor the direct, intermediate, and final impact of business trips on the effectiveness of the activities of a specific state body. Civil servants will also submit reports on the results of each business trip, based on which the authorities will assess its effectiveness.

Sugar tax

The excise tax on white sugar without flavorings or coloring additives imported into the country will be abolished.

Pension Digitalization

Services related to the provision and payment of pensions in cash will be provided using biometric identification and an electronic digital signature of citizens. In this case:

• it is permitted to sign the payment statement in electronic form through a tablet;
• The Ministry of Justice provides citizens with biometric identification information free of charge based on an electronic request from the Pension Fund and JSC Xalq banki;
• Expenses related to the purchase of devices used for the implementation of biometric identification services are financed from the Pension Fund and JSC Xalq banki.

In addition, the authorities will also introduce a service to provide practical assistance in assigning pensions to citizens, in particular, to eliminate shortcomings in the electronic information on length of service and salary.

Transit of goods

All certificates, conclusions, and permits related to the import, export, and transit of goods will now be processed exclusively through the “Single Window” customs information system.

Green certificates

Now, technological processes of activities related to the I and II categories of environmental impact must have a valid Green Certificate. The presence of such a document will become mandatory for issuing a certificate of conformity for products manufactured in the country subject to mandatory confirmation of compliance with the requirements of regulatory documents in the field of technical regulation.

Only legal entities with appropriate accreditation will be able to conduct environmental certification. To obtain a Green Certificate, the applicant must submit an application to the certification body. The certification body shall make a decision on conducting the conformity assessment work within one day.

Subsidies and payments

Subsidies, grants, and loans provided to citizens in monetary form from the State Targeted Fund for Poverty Reduction will now be provided in stages through social cards.