Starting from January 1, 2019, all entities, regardless of the number of employees, who have a trade turnover over 1 billion soums, will go on to pay the generally established tax payment. It was noted by Shavkat Mirziyoyev during a video conference meeting held on Dec. 20.
The gap between the tax burden of single tax payers and payers of the generally established tax is excessively large, which does not stimulate the consolidation of small businesses. Moreover, world-famous brands, such as Adidas, Nike, Indesit, Knauff, at one time began their activities as small family businesses and, through appropriate incentive mechanisms, turned into large companies.
Speaking about this, the President asked: when will Uzbekistan have such big brands?
It was noted that it is necessary to improve the qualifications and practical skills of employees of territorial tax authorities in calculating the generally established taxes, to conduct appropriate training for accountants of business entities.
“In calculating and maintaining reports on a generally established tax, value added tax is the most difficult,” said Shavkat Mirziyoyev. “To facilitate this process, it is planned to introduce it in stages over two years”.
In particular, enterprises whose turnover ranges from 1 billion to 3 billion soums will pay VAT voluntarily, in a simplified manner. That is, they will not keep a separate invoice for the purchased goods and will pay tax based on trade turnover, differentiated by business area.
The president gave instructions on the introduction of modern information technologies, providing legal entities with the necessary computer programs and preparing accountants for proper organization of the above works.
At the meeting it was emphasized that the existing bureaucratic obstacles in tax administration negatively affect the activities of exporters. In particular, manufacturing enterprises exporting their products face “red tape” and have to go to the district, regional and republican tax authorities for months to refund the amount of value added tax.
In this regard, the President noted the need to introduce a simplified procedure, which provides for the refund of value added tax within ten days.
“The new tax policy should fully cover all the procedures, mechanisms and methods of taxation. This is our first step towards creating a fair and stimulating tax system,” the head of state said.
