VAT rate’s decrease in Uzbekistan to reduce state budget revenues by $1B

Business Materials 12 September 2019 18:01 (UTC +04:00)

Baku, Azerbaijan, Sept. 12

By Fakhri Vakilov - Trend:

Reducing the rate of value added tax (VAT) from the current 20 to 15 percent will reduce revenues to the state budget of Uzbekistan by 10 trillion soums ($1.06 billion) per year, which is about 2 percent of GDP, Trend reports with reference to the Ministry of Finance of Uzbekistan.

During the video conference on September 11, the President of Uzbekistan Shavkat Mirziyoyev set before the Ministry of Finance the task of developing proposals to reduce the value-added tax rate in order to further support businesses.

“Reducing the VAT rate to 15 percent, together with measures aimed at ensuring its neutrality, proposed in the new version of the Tax Code, will positively affect the activities of business entities,” the Ministry of Finance said.

Recently, Trend reported that the president instructed the Ministry of Finance to provide assistance to about 30,000 farms, which starting from October 1 of the current year will pay value added tax, in reporting and implement appropriate software in all regions.

The president also stressed that it is necessary to transfer large tax payers to electronic invoices and integrate them with computer accounting programs. This, he said, will increase the efficiency of the study of reserves and increase tax revenues.

($1- 9394.08 UZS on Sept. 12)


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