Abdulla Azizov: “Uzbekistan’s tax service is perceived as punitive. We want to change this attitude”

BUSINESS 21:06 / 05.10.2019 2198

On September 25, President Shavkat Mirziyoyev signed a decree on improving tax policy. According to the document, in order to support business entities, the value added tax (VAT) rate was reduced from 20% to 15%.

On October 3, a meeting on this topic was held at the International Press Club. The recently appointed deputy chairman of the State Tax Committee Abdulla Azizov took part in it, who answered the questions asked.

- You lived in Denmark for 15 years and worked for 12 years. What is the difference between the European and Uzbek tax administration?

- There is a consulting service in the tax system of Denmark. They help taxpayers with advice. For example, the tax reporting of large firms is very complicated. But tax inspectors come to the rescue and explain to the taxpayer. That is to say, the tax inspector becomes an assistant to entrepreneurs.

This topic is also being raised in Uzbekistan. But among our people, the tax service is perceived as a punitive body. We want to change this mindset.

The tax service should not be perceived as a structure harassing entrepreneurs, applying various penalties, but as a body ready to give competent advice, offer assistance and correct mistakes. To implement this goal in practice, we have opened a tax consultation office. This system will be implemented in all tax offices. Entrepreneurs can go there for advice or get an answer to a question by phone. In general, we can say that we pursue goals such as increasing public confidence, changing the level of the system and supporting the population.

- There is a certain hostility towards each other between tax authorities and entrepreneurs. What needs to be done to make a difference?

- There should be friendly relations between entrepreneurs and the tax service. We must support each other. Tax payments should be considered as a factor contributing to the development of the state, and not as a withdrawal of funds from taxpayers. Therefore, we must work together.

My main goal is in order to eliminate a possible corruption factor, reducing human intervention in the relationship of tax authorities and entrepreneurs through the introduction of information technology. 

We planned to launch several programs in this direction. Taxpayers should automatically receive a signal in advance in the form of messages about defects and errors. Before applying the fine as a punishment, the taxpayer should be warned.

This is also provided for in the new Decree. From now onwards, the entrepreneur’s bank account will not be closed by tax authorities. We will notify him of the error in advance. If the taxpayer does not take any measures, then we have the right to suspend operations on his current account within 30 days. In a word, relations of entrepreneurs and the tax service will develop according to such a scheme,” Abdulla Azizov said.

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