BAKU, Azerbaijan, May 18
By Ilkin Seyfaddini - Trend:
In the first quarter of 2020, state budget revenues made up 28.5 trillion soum ($2.8 billion), expenditures - 27.7 trillion soum ($2.7 billion), and the budget was executed with a surplus of 800 billion soum ($78.8 million) or 0.5 percent of GDP, Trend reports citing the Ministry of Finance of Uzbekistan.
State budget revenues for the first quarter of 2020 were 5.4 trillion soum ($532.2 million) more than for the same period of 2019.
In 1Q2020, tax revenues amounted to 23.8 trillion soum ($2.3 billion), which is 5.3 trillion soum ($522.4 million) more than for the same period in 2019.
The Interregional Inspectorate on Large Taxpayers, which collected 65 percent or 15.4 trillion soum ($1.5 billion) of all taxes administered by tax authorities, has started to work fully, the message said.
According to the ministry, the coronavirus pandemic did not have a significant impact on budget revenues, as revenues were formed mainly by the results of economic activity in the period from December 2019 through February 2020.
In the first quarter of this year, the customs revenues amounted to 4.8 trillion soum ($473.1 million), and in the same period last year - 3.4 trillion soum ($335.1 million). VAT on imported goods made up the largest part of these revenues - 3.8 trillion soum ($374.5 million), excise tax - 200 billion soum ($19.7 million), and customs duties - 600 billion soum ($59.1 million).
The bulk of state budget revenues in terms of taxes were formed at the expense of the following: VAT - 7.2 trillion soum ($709.7 million, 25.4 percent of all revenues), income tax - 6.3 trillion soum ($620.9 million, 22.1 percent), personal income tax - 3.6 trillion soum ($354.8 million, 12.5 percent), subsoil use tax - 3.9 trillion soum ($384.4 million, 13.6 percent) and excise tax - 3. 2 trillion soum ($315.4 million, 11.1 percent).
The revenues from VAT decreased by 500 billion soum ($49.2 million) compared to the same period in 2019. The decline in revenues is due to the reduction of the rate from 20 percent to 15 percent, as well as innovations that came into force on 1 January 2020 with the adoption of the Tax Code in a new version, the message said.
The budget received additional revenues in the amount of 350 billion soum (34.4 million), including fromr imports - 150 billion soum (14.7 million), due to the abolition of privileges granted to enterprises of the automotive industry in accordance with the Decree of the President of Uzbekistan dated 27 June 2019.
The introduction of a flat tax rate was an incentive to reduce the social tax rate from 25 percent to 12 percent for enterprises with a State share of 50 percent or more in the authorized capital stock, while the increase in the minimum wage increased the share of the wage fund in the legal sector by 37 percent, the ministry said.
The measures taken were also beneficial for economic entities. The reduction of the social tax rate from 25 percent to 12 percent for enterprises with a state share of 50 percent or more in the authorized capital stock made it possible to leave at their disposal about one trillion soum ($98.5 million).
In accordance with Presidential Decree No. UP-5978 of April 3, 2020, On additional measures to support the population, sectors of the economy and business entities during the coronavirus pandemic, the current rates remain in force until the end of this year concerning excise tax on alcohol, alcoholic beverages, including beer and wines; excise tax on the sale of gasoline, diesel fuel and gas to end consumers.
As a result of maintaining excise tax rates for the above goods, the shortfall of state budget revenues will amount to over 500 billion soum ($49.2 million).
---
Follow author on Twitter: @seyfaddini