Uzbekistan abolishes ineffective tax benefits
BAKU, Azerbaijan, Feb. 17
By Ilkin Seyfaddini – Trend:
In Uzbekistan, some 84 types of tax benefits were abolished, as part of the implementation of new Tax Code, Trend reports via Uzbek media.
Among the abolished tax benefits are those which didn't yield the expected results, said Deputy Chairman of the State Tax Committee of Uzbekistan Fazliddin Umarov.
Abolishment of ineffective tax benefits, as Umarov said, will not affect inflation and prices.
With the adoption of the new version of the Tax Code on April 1, 2020, Uzbekistan will abolish tax benefits that hinder the formation of a normal competitive environment, i.e. those provided to individual companies or entrepreneurs, said the report.
Now, according to Article 75 of the Code, tax benefits on individual taxes (except for VAT, excise tax and subsoil use tax) can be granted by the decisions of the president only in the form of reduction of the established tax rate, but not more than 50 percent and for a period not exceeding three years.
At the same time, Uzbekistan will not review the tax benefits for foreign oil and gas companies, which are provided under production sharing agreements.
The Ministry of Finance and the State Tax Committee of Uzbekistan reported about the implementation of a new Tax Code from January 1, 2020.
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