In Uzbekistan, from October 14 to October 21, potatoes rose in price by 43%. To contain the rise in food prices, in the same week the country's upper house of parliament approved the elimination of VAT on imports and sales of a number of food products, including potatoes.
The current price level is 39% higher compared to the same date in 2020 and 2,2 times higher than the same date in 2019.
As a factor restraining further growth in prices for potatoes in the domestic market of Uzbekistan, on October 21, the Senate approved a law on amendments to the Tax Code, providing for the zeroing of value added tax (VAT) on the import and sale of potatoes, meat products, frozen fish and live animals. According to this document, from October 10 to December 31, 2021, imports and sales of the above goods are exempt from VAT.
It also became known that due to the zeroing of VAT on potato imports, the country's budget will lose 76,5 billion soums, and 30 billion soums on sales turnover. For only one product - potatoes - these measures cost the country's budget $ 10 million.