At the next plenary session of the Senate of the Oliy Majlis, a law aimed at introducing Islamic banking activities in Uzbekistan was discussed and approved.
The law introduces amendments to 2 codes and 7 laws, establishing the legal foundations for conducting Islamic banking activities. In particular, a separate type of license for Islamic banking activities is being introduced, creating an opportunity for banks to provide fully Islamic or simultaneously both traditional and Islamic services.
Furthermore, Islamic finance councils will be established at the Central Bank and banks conducting Islamic banking activities. A separate chapter is being introduced into the Tax Code, establishing the procedure for taxing Islamic finance operations; income from this activity is equated to interest income, and the markup on goods sold by banks is exempt from VAT.
Senators emphasized that the law will serve to expand opportunities for the population and entrepreneurs to use financial services, improve the competitive environment, and attract new investors to the banking and finance sector.
