To change the current situation and stimulate gold processing within the country, the State Tax Service (STS) has initiated a set of support measures for local jewelers.
As Isabekov noted, using even a portion of the extracted gold for production in the country will not only fully satisfy domestic needs but also significantly enhance export opportunities. "The industry has great potential that needs to be developed," emphasizes the STS deputy chairman.
Illegal Activities of Jewelers
One of the main problems for the development of the jewelry sector has been its operation in the "shadows," where many entrepreneurs acted outside the law.During discussions, some of them admitted that they were tired of the pressure from criminal structures and were ready to legalize their activities by paying taxes, Isabekov reported.
Legalization Worth 17 Billion Soms
To bring the sector out of the shadows, a legalization campaign was initiated, which has already yielded impressive results. Currently, over 1,600 documents have been registered through the electronic invoice system, allowing for the legalization of jewelry assets worth nearly 17 billion soms. In this context, the tax service has significantly reduced the cost of state hallmarking of products—from 34 to 10 soms per unit.Government Support for Jewelers
Now the government is starting to provide direct financial assistance. Kubanychbek Isabekov reported that a project is currently in the cabinet of ministers to provide jewelers with preferential loans at an annual rate of 6%. It is expected that the document will be signed soon. Additionally, by the president's order, a discount issue has been resolved: local producers will be able to purchase gold from the state with a 2% discount off the world price of the London fixing, while in Uzbekistan this discount is only 1%.Besides discounts, jewelers will be able to purchase precious metal in installments, which will help solve the problem of insufficient working capital. Customs concessions are also planned for the import of equipment, raw materials, and other necessary materials, which should help small workshops become competitive factories.
Expected Multiplicative Effect
The state is counting on a multiplicative effect from the implementation of these measures. The essence is as follows: by offering preferential conditions today, the budget will be able to receive much more tomorrow. "The logic is simple: we provide the producer with gold at a discount and cheap credit, they create products with high added value, and when sold, the taxes from these sales return to the budget multiple times," explained Isabekov.At the same time, the tax service insists on complete transparency in the sector. From March 1, control over the turnover of jewelry will be tightened, and each product must have supporting documentation. Kubanychbek Isabekov emphasized that the STS has discussed all conditions with jewelers in advance to avoid misunderstandings in the future and ensure stable growth in the industry, where jobs must be official.
