Uzbekistan reforms its tax system

19 July 2017 15:45 (UTC+04:00)

By Kamila Aliyeva

The tax system of Uzbekistan is developing in line with the country’s course of reforms. Currently, Uzbekistan plans to reform its tax system following the signing of decree "On measures to radically improve tax administration, increase the collection of taxes and other mandatory contributions" by President Shavkat Mirziyoyev. 

The document outlines the main directions for reforming the system of bodies of the state tax service - the widespread introduction of modern ICT, the increased responsibility of officials of authorized bodies and organizations for the timely provision of reliable information related to taxation issues, the development of effective mechanisms for preventing tax violations and improving legal culture of taxpayers.

Measures aimed to ensure full coverage of taxable items, expand the taxable base by restoring the activities of non-functioning enterprises, and improve the financial condition of low-profit enterprises will be implemented.

From the beginning of 2018, tax monitoring, a modern form of tax control, will be introduced. It provides for information exchange between tax authorities and bona fide taxpayers with the provision of comprehensive assistance in solving current tax issues.

Taxpayers who are subject to temporary financial difficulties may be granted tax holidays.

An inspection to control the completeness of the revenues to the state budget will be created in the structure of the Accounting Chamber. The inspection will analyze the data on the collection of tax and customs payments in the context of the regions and identify causes and effects of reducing fees in the sectoral and territorial contexts.

The decree envisages formation of a working commission to improve tax legislation.

By the beginning of 2018, a number of measures will be implemented to fully provide business entities with an electronic digital signature, while taxpayers will be granted access to all state services provided by tax authorities.

The latest Tax Code entered into force from January 1, 2008, in an attempt to develop a fairer tax system, ease the tax burden on businesses, simplify tax procedures, encourage saving and investment and promote economic development in the country.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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