Economy:
Uzbekistan has a diverse economy that has undergone significant reforms since gaining independence from the Soviet Union in 1991. The country's economy is primarily driven by agriculture, mining, and natural resources. Cotton, wheat, and fruits are among the major agricultural products. Uzbekistan is also rich in natural resources, including natural gas, gold, copper, and uranium.
In recent years, the government has focused on diversifying the economy and attracting foreign investment to sectors such as manufacturing, textiles, and tourism. Special Economic Zones (SEZs) have been established to encourage investment and provide incentives to businesses.
Money and Currency:
The official currency of Uzbekistan is the Uzbekistani som (UZS). The som is available in various denominations, including coins and banknotes. Currency exchange services are widely available in major cities and tourist areas, and US dollars and euros are often accepted for larger transactions. However, it's advisable to use the local currency for smaller purchases.
Banking and Financial Services:
Uzbekistan has a well-developed banking sector, with both state-owned and private banks operating across the country. Banking services include savings accounts, current accounts, loans, and money transfer services. ATMs are available in major cities and towns, and credit and debit cards are increasingly accepted at larger businesses and hotels. However, it's essential to carry cash when traveling to more remote areas, as electronic payment options may be limited.
Taxes:
Uzbekistan has a progressive income tax system, with rates ranging from 8% to 22% for individuals. The country also levies a 20% value-added tax (VAT) on most goods and services. Corporate income tax is set at a standard rate of 15%.
In recent years, the government has been working to simplify tax procedures and improve the business environment to attract more foreign investment.
Uzbekistan's economy has seen significant growth and development in recent years, driven by its rich natural resources and various economic sectors. The country's currency, the som, is the official medium of exchange, and banking services are widely available in major cities. With a progressive income tax system and efforts to improve the business climate, Uzbekistan is working towards creating a more attractive investment environment. As a traveler or potential investor in Uzbekistan, it's essential to familiarize yourself with the local currency, banking services, and tax regulations to have a smooth financial experience in the country.
