The Association of Soft Drinks and Juices of Uzbekistan (UzBev) has recently taken a proactive stance by drafting a formal letter addressed to the President, calling for the cancellation of the impending mandatory digital labeling implementation scheduled for March 1. This appeal advocates for the initiation of a comprehensive dialogue between businesses and the government to address the myriad challenges faced by the beverage industry, Spot reported on February 21.
In its correspondence, UzBev articulates several pressing concerns that have plagued the beverage industry in recent years. Foremost among these is the perceived lack of consultation and collaboration between industry stakeholders and government authorities regarding pivotal policy decisions. The association underscores the disconcerting trend of major regulatory announcements, such as the imposition of additional excise taxes and the provision of preferential treatment and subsidies to monopolistic entities, being disseminated through media channels without prior industry engagement. Such unilateral actions have introduced a palpable sense of uncertainty and instability within the business environment, hindering the industry's ability to plan and adapt effectively.
Moreover, UzBev draws attention to the potential ramifications of the proposed digital labeling mandate, highlighting a myriad of technical, logistical, and economic challenges associated with its implementation. These challenges range from doubts regarding the efficacy of digital labeling in curbing smuggling activities to concerns about the practical feasibility of applying labeling to high-speed production lines. Additionally, the association raises pertinent issues related to the increased financial burdens and data security risks imposed on manufacturers, further exacerbating the industry's operational complexities.
The association contends that such a voluntary scheme would afford manufacturers greater flexibility in adapting to the new labeling requirements while mitigating the adverse economic impacts associated with mandatory compliance.
Earlier Daryo reported that beginning April 1, 2024, Uzbekistan will enforce a new excise tax on sugary carbonated beverages and energy drinks. This legislative amendment, approved by the President of Uzbekistan on December 28 in 2023, comes in line with the core principles outlined in the country's tax and budget policy.
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