Government of the Republic of Uzbekistan

03/01/2021 | Press release | Distributed by Public on 03/01/2021 03:46

The Cabinet of Ministers approved the procedure for granting subsidies of up to 50% for domestic travel and the amount of local tourist fees charged for accommodation

The Cabinet of Ministers approved the procedure for granting subsidies of up to 50% for domestic travel and the amount of local tourist fees charged for accommodation

The Cabinet of Ministers of the Republic of Uzbekistan approved the procedure for the use of benefits and subsidies established by the Decree of the President of the Republic of Uzbekistan dated february 9, 2021, as well as the amount of local tourist fees charged for accommodation.

According to this, tickets for new flights will be sold with a 25% discount, and if a ticket is purchased through tour operators, there will be another 15% discount and a general 40% discount. There will also be an additional 15 percent discount on train tickets purchased from tour operators and a 10 percent discount on hotel services.

For reference: When buying a tour package 'Travel from the Fergana Valley to the ancient city of Khiva' by a family of 5 for 6.6 million soums (air and hotel services), tour operators provide discounts of 2 million soums due to the state subsidies of 4.6 million soums. In this case, the maximum (limited) amount (size) of subsidized air and rail routes, as well as the cost of air tickets and accommodation for hotel services, is determined by the Special Commission.

The local tourist (hotel) tax for accommodation is 0.4% of the base amount of the calculation, or only 980 soums. This fee is not included in the tax base of residence and is used for promotions, advertisements and promotional activities to support domestic travel, to support entrepreneurs. And also 'Travel around Uzbekistan!' according to the program: the employer's expenses for the purchase of travel vouchers are not considered employee's income and are deducted when calculating the corporate income tax; the taxable income of individuals is reduced by the amount of expenses incurred for the purchase of travel packages. Note that the tax breaks introduced in 2020 have been extended until the end of 2021.

Only entrepreneurs of the industry in 2020: 26 billion soums are exempted from land tax and property tax; income tax was reduced by 50% or by 10 billion soums; social payments were reduced from 12 to 1 percent; over 4,000 employees of 241 entrepreneurs received interest-free loans for 16.1 billion soums; 120 accommodations are available for or a bout 10 percent of the hotel's cost per guest; 2 billion soums of additional subsidies provided; repayment of loans was suspended, and part of the interest on them was reimbursed from public funds. With the effective use of the above benefits and preferences, it is necessary to organize intensive cooperation between businesses in the tourism sector to change the internal tourist flows.

Source: The State Committee of the Republic of Uzbekistan on development of tourism