WB to do detailed analysis of Uzbekistan's tax system (Exclusive)
Baku, Azerbaijan, July 3
By Fikret Dolukhanov – Trend:
The World Bank (WB) will carry out a detailed analysis of tax system of Uzbekistan in the future to support the government of the republic in implementing the tax reform that is equitable, conducive to private sector growth, investments and financially sustainable, a representative of the WB told Trend on July 3.
The bank’s representative added that the WB is in the early stages of offering the technical assistance to the government in this area.
The WB experts headed by Alma Kanani, head of the Global Tax Department, have earlier offered Uzbekistan to keep the VAT rate and its distribution to small business entities, as well as to abandon the number criterion.
“At the request of government of Uzbekistan, a team of World Bank Group tax experts visited Tashkent in June 2018. The team was asked to review and evaluate the Government’s proposal for the tax reform, based on the extensive institutional experience the Bank has globally in fostering economic and tax revenue reforms. The Uzbek government provided the data and information needed to conduct this analysis and offer subsequent advice,” the WB representative reminded.
He noted that the WB team’s suggestions, including on the VAT, are based on a range of global experience and international best practices, such as ensuring that the tax system is fair, efficient, and simple and it can generate sustainable revenues required for the delivery of government services to its citizens, including most vulnerable strata.
“In its analysis, the World Bank team considered not only tax rates but also other aspects of the tax system. This includes issues such as simplifying and streamlining tax processes for businesses, improving the responsiveness and governance of the tax administration, and strengthening communication between the taxpayers and tax administration,” the bank’s representative concluded.
The World Bank earlier told Trend that they welcome Uzbekistan’s wide-ranging reforms to boost the country’s economy and improve the lives of all Uzbek citizens.
The World Bank Group is re-aligning its country partnership framework to respond to the government’s reforms. The goal is to help Uzbekistan develop market economy, reform state institutions, broaden citizen engagement and invest in human capital through education, health and social protection systems.
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