To prevent the spread of COVID-19 in the Republic of Uzbekistan, the Decree of the President of the Republic of Uzbekistan No. 5969 dated March 19, 2020, "On priority measures to mitigate the negative impact of coronavirus pandemic and global crisis on the economic sectors" ("UP-5969") and the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 176 dated March 23, 2020, "On additional measures against the spread of coronavirus infection" (“PKM-176”) have been adopted.

In accordance with UP-5969, a Republican Anti-Crisis Commission was established, the main tasks of which include rapid response to any problems in connection with the pandemic and development of additional measures to ensure smooth operation of industries and economic sectors in the course of fighting the spread of coronavirus infection and other global risks.

Below we provide a brief overview of measures taken:

1. Creation of Anti-crisis Fund under the Ministry of finance of the Republic of Uzbekistan.

An Anti-crisis Fund of 10 trillion sums (equivalent of US$1 billion) has been set up under the Ministry of Finance of the Republic of Uzbekistan. The Fund resources shall be allocated for the following purposes:

• support of entrepreneurship and employment by implementing the additional infrastructure projects in the regions of the country, which will be aimed at expanding economic activity and employment, as well as the construction of utilities, in particular in small industrial zones;
• ensuring the sustainable functioning of economic sectors by:
  • providing state support to the strategically important entities through the provision of interest-free budget loans for the repayment of loans attracted under the state guarantee, and implementing priority activities;
  • compensation of the part of transport expenses of businesses engaged in foreign trade operations;
  • provision of additional support measures to the industries mainly affected by the coronavirus and commercial banks in case of qualitative deterioration of the credit portfolio.

2. Tax incentives

In accordance with the UP-5969:

1. tax rates for the use of water resources for the volumes used for irrigation of agricultural land are reduced in 2020 by 50 per cent of the established rates;
2. the deadline for the submission annual personal income declarations for individuals for 2019 is extended until August 1, 2020;
3. the deadline for the payment of property tax and land tax for individuals has been extended until October 15, 2020;
4. for a period up to January 1, 2021, the tax audit of the activities of legal entities is suspended, with the exception of a tax audit conducted in the process criminal proceedings and in connection with the liquidation of a legal entity;
5. for a period up to October 1, 2020, the application of fines on legal entities for the overdue receivables from foreign trade operations is suspended;
6. the tax authorities suspend the imposition of fine on property tax, land tax and tax on the use of water resources for legal entities experiencing temporary difficulties, and do not take measures to enforce collection of tax debt,

Taking into account that, in accordance with the Tax Code of the Republic of Uzbekistan, local government authorities were empowered to take decisions on changing the deadlines for the payment of relevant taxes, as well as lowering their rates, local government authorities were recommended to grant an extension of 6 months to legal entities for the payment of property tax, land tax and tax for the use of water resources without the imposition of a fine. At the same time, deferral for these taxes is provided on the basis of the taxpayer’s application and the conclusions of the heads of the regional divisions of the Ministry of Economy and Industry and the Ministry of Finance without requiring any other documents.

3. Assistance to participants of foreign trade operations

In accordance with UP-5969, the legal entities are allowed to carry out:

• export of goods without guarantee payment with existing overdue receivables not exceeding 10 per cent of the total export of goods for the reporting year;
• during 2020, one-time operations on the import of technological equipment and raw materials in exchange for the repayment of overdue receivables on foreign trade operations.

The relevant government authorities were ordered:

• to form an operational headquarters to ensure expedited passage of goods through border customs posts, their uninterrupted customs clearance, as well as the issuance of permits for exported and imported goods;
• to introduce, starting from April 1, 2020, the mechanism for customs clearance of imported food products in an expedited manner, including by issuing permits before the goods arrive on the territory of the Republic of Uzbekistan.

4. Restrictions on entry into the territory of the Republic of Uzbekistan, as well as on exit from its territory by all means of transport

Starting from March 16, Uzbekistan closed air and road links with all foreign countries. Uzbek visas of foreign citizens are automatically extended until May 5, 2020. The citizens of states that have a right to enter Uzbekistan without a visa for a certain period of time, in case of violation of the prescribed period, are permitted to leave the country before May 5, on an exceptional basis. In the above cases, no enforcing measures or fines will be imposed on foreign citizens.

Starting from March 20, passenger transport by bus, car, rail and air to international destinations was suspended for 40 days. The restriction does not apply to freight transport by road, air, rail or river transport, as well as to goods of foreign trade. 

All vehicles, goods and cargo arriving in the Republic from abroad, as well as in Tashkent from other regions, are subject to mandatory disinfection.

5. Restrictions on entry into Tashkent city

Starting from March 24, 2020, entry to Tashkent city from other regions on all types of transport (buses, minibuses, passenger cars, airlines and railway transport) was closed. Entry and exit to the capital are allowed for persons:

• with permanent residence registration in Tashkent city;
• with permanent residence registration in the Tashkent region - if they are employees of government bodies and institutions engaged in labor activities in Tashkent (in non-governmental organizations - with the appropriate permission of the employer).

Crossing the border Tashkent city is also allowed in cases involving the carriage of goods.

6. Suspension of transport

Starting from March 22, public transport (buses, underground and shared taxi) in the territory of Tashkent city is temporarily cancelled. Medical staff shall be provided with special disinfected buses. Taxi disinfected by the Tashkent City Sanitary and Epidemiological Centre shall be publicly available. Each taxi shall be provided with a certificate of disinfection on a daily basis. 

Starting from March 24, the movement of intercity (inter-district) public transport in the Samarkand region has been temporarily suspended.

Starting from March 24, Uzbekistan Airways and Uzbekistan Temir Yullari cancel all domestic flights for an indefinite period.

7. Activity of legal entities (employers)

In accordance with UP-5969:

• Parents (guardians, trustees) quarantined due to infection with a coronavirus infection or suspected infection, as well as persons caring for their child under the age of 14, are paid temporary disability benefits in the amount of 100 per cent of the average salary;
• Termination of the employment contract with the employee who is the parent (guardian, trustee) of a child infected with coronavirus infection or quarantined, as well as under 14 years of age, is prohibited.

Starting from March 23, all companies and entities regardless of the form of ownership shall work remotely. Some employees shall be placed on leave, as prescribed by law. All employees attending work shall wear medical facemasks. Violation of quarantine entails disciplinary responsibility.

In accordance with PKM-176:

• All organizations, regardless of departmental subordination and legal form, without prejudice to their core business, must send their employees on annual leave or transfer to remote work (in remote or online mode).
• The heads of all organizations (employers), regardless of departmental subordination and legal form, are required to:
  • measure the body temperature of employees, and if a high temperature is detected, not to allow access to workplaces and immediately inform the health authorities about this;
  • admit visitors only when they use a medical mask and medical devices;
  • at the request of the state sanitary inspection authorities, immediately report contact with an infected employee, disinfect their location;
  • assist employees in complying with isolation requirements.

8. Introduction of force majeure for business in case of non-performance of contracts

In connection with the epidemiological situation in the world and the spread of coronavirus in Uzbekistan, the government decided to introduce a force majeure for businesses in the case of a failure to fulfill contracts. The relevant force majeure certificate may be obtained in one day (if force majeure event is associated with coronavirus).

At the same time, it should be pointed out that in accordance with the Regulation on the procedure of confirming the force majeure events, as approved by the Resolution of the Cabinet of Ministers No. 63 dated February 15, 2005, only extraordinary, unavoidable and unforeseen circumstances, caused by natural phenomena or socio-economic circumstances, which do not depend on the will and actions of the parties, which occurred in the republic, in connection with foreign trade and international agreements are considered to be force majeure events. Force majeure events do not include violation of obligations on the part of the debtor's counterparties, absence of goods that are necessary for the performance of the contract in the market.

9. Suspension of the activity of facilities of mass gatherings, as well as prohibition on the organization of mass events

Starting from March 16, pre-school, secondary and higher educational institutions of Uzbekistan closed to prevent the spread of the coronavirus COVID-19.

Starting from March 21, in all regions of Uzbekistan, until the epidemiological situation stabilized, entertainment facilities and catering facilities (except for delivery services) were closed.

Starting from March 23, weddings and other family events and ceremonies with the participation of a large number of people are prohibited (the number of participants should not exceed 10-15). These activities are allowed to be carried out exclusively when absolutely necessary and compactly, with the closest people, the number of which should not exceed 10-15 people.

Starting from March 24, in Tashkent the work of all markets (non-food products, construction, automotive, household appliances and others) and shopping centers, temporarily is suspended, regardless of their form of ownership. Only dehkan markets, supermarkets and food shops continue to work. In addition, hospitals, clinics and pharmacies continue to work.

10. Liability

Violation of sanitary laws for combating epidemics, resulting in widespread illness or poisoning of people, is punishable by a fine in the amount ranging from 11.15 million to 22.3 million soums (approximately from US$117 to US$234 ) or limitation of certain rights for up to 5 years, or correctional labour for up to 2 years or restriction of freedom from 1 year to 3 years or imprisonment up to 3 years.

Production or storage for the purpose of disseminating materials aimed at creating panic among the public is punishable by a fine in the amount ranging from 44.6 million to 89.2 million soums (approximately from US$4,695 to US$9,390) or correctional labor for up to 3 years or restriction of freedom of 1 year up to 3 years or imprisonment up to 3 years.

The dissemination of any form of information and materials aimed at creating panic among the public is punishable by a fine in the amount ranging from 66.9 million to 89.2 milliom soums (approximately from US$7,042 to US$9,390) or restriction of freedom from 3 to 5 years or imprisonment from 3 to 5 years.

Starting from March 25, citizens without masks in public places in the city of Tashkent, the Republic of Karakalpakstan and regional centers will be fined in the amount of 223,000 soums (approximately US$23), if the violation is repeated, the fine in the amount of 669,000 soums (approximately US$70) will be imposed.