Baku, Azerbaijan, Oct. 31
The development of tax and expenditure policy next year and the changes made to the tax system have been discussed at the meeting held by President Shavkat Mirziyoyev on October 30, Uzbekistan News reported.
After the cancellation of compulsory deductions from the proceeds starting from January 1, 2019, the enterprises in Uzbekistan will save 5.2 trillion soums of income.
The growth in household incomes will be 6.5 percent due to the reduction of the maximum rate of personal income tax from 22 percent to 12 percent, the single social payment rate from 25 percent to 15 percent, as well as the abolition of the 8 percent insurance premium.
The rates of the tax on the property of legal entities (from 5 to 2 percent), the income tax (from 14 to 12 percent), the single tax payment for small businesses (from 5 to 4 percent) will also be reduced. These measures will help to leave 2 trillion soums of additional funds at the disposal of entrepreneurs.
In total, the number of taxes and obligatory payments will be reduced from 19 to 15.
The reduction of taxes will cause a decrease in budget revenues. The instruction was given at the meeting to compensate for this process by systematic work on the legalization of the number of employees and wages.