Baku, Azerbaijan, Sept. 26
By Nargiz Sadikhova - Trend:
The VAT rate will be reduced in Uzbekistan to 15 percent from the current 20 percent, Trend reports with reference to the Uzbek media.
This is envisaged by the decree of Uzbek President Shavkat Mirziyoyev, according to which the change will enter into force Oct. 1.
Uzbek authorities hope that along with other measures specified in the new edition of the Tax Code, this will have a beneficial effect on the activities of business entities.
However, according to some experts, reducing the rate by 5 percent will reduce revenues to the state treasury by 10 trillion soums per year, which is about 2 percent of the country’s GDP.
Value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.
($1= 9,394.44 soums on Sept. 26)