Concept of tax reform for 2018-2020 published for public discussion
Tashkent, Uzbekistan (UzDaily.com) --
National Project Management Agency under the President of the Republic of Uzbekistan prepared a draft concept on radical reform of the tax system.
The document envisages reducing the tax burden, the VAT rate, unification and cancellation of a number of taxes and mandatory payments, as well as measures to improve tax administration.
A high level of tax burden leads to the withdrawal of capital in the shadow turnover. A significant difference in the level of tax burden between small and large business entities (an average of 3-4 times) hinders the expansion of production and enlargement of business entities.
The high rate and complexity of the VAT collection system lead to a diversion of the taxpayer’s working capital, a rise in the cost of intermediate and final consumer products, and the lack of effective cooperation between large and small businesses.
The current system of taxing property of legal entities restrains investment in production capital facilities and infrastructure, leading to an increase in the costs of capital-intensive industries.
The improvement of the system of taxation of incomes of individuals leads to an underestimation of the wage fund and, ultimately, to "gray" salary schemes.
Inefficient tax administration generally negatively affects the level of revenues of the State budget.
These and many other shortcomings of the current system significantly reduce the investment attractiveness of the republic, because in the eyes of most investors, Uzbekistan does not provide an understanding of the norms of tax legislation, healthy competition, transparency of tax administration, an acceptable level of tax burden and guarantees for the protection of investors’ rights.
The National Project Management Agency under the President of the Republic of Uzbekistan organizes a public discussion of the draft Concept on 29 March at JSC Uzexpocentre. The beginning is at 10:00.
Experts in the field of taxation, representatives of business communities, the media, international financial institutions, the diplomatic corps and other interested persons are invited to take part in discussion.