The law introduces appropriate amendments and additions to the current Customs and Tax Codes, the Law “On Investments and Investment Activities”.

It was noted that in accordance with the amendments to the Tax Code, the rate of value added tax (VAT) is reduced from 15 to 12%. As a result of this benefit, entrepreneurs have at their disposal funds in the amount of 14 trillion soums, which they can use to further expand their activities.

Turnover tax rates are unified from 4% to 25% for 14 types of activities, while maintaining a single rate of 4%.

Also, taxpayers were given the right to choose to pay a fixed tax for the year in the amount of 20 million soums with a turnover of up to 500 million soums and 30 million soums – with a turnover of more than 500 million soums in equal monthly shares. At the same time, taxpayers are exempted from the mandatory accounting and submission of certain reports, as well as from paying tax on dividends from net profit.

The law provides for important changes aimed at stimulating the development of small and medium-sized businesses, and provides that the income tax rate will be reduced by 2 times within 1 year for entrepreneurs belonging to the category of small businesses with a turnover of more than 1 billion soums. Within 2 years, the income tax rate is reduced by 2 times for entrepreneurs who have moved from the category of small business to the category of medium business.

In order to create additional opportunities for taxpayers, from January 1, 2023, the amount of non-taxable income when individuals direct their income to cover mortgage loans from the current 15 million soums to 73.6 million soums will increase.

It is established that regardless of the share of income from exports (in practice, if it is more than 15% of income), income tax, turnover tax on a part of exported goods (services) is not levied.

The established deadline for collecting tax debts at the expense of property is extended from the current 30 to 60 days.

Also, entrepreneurs belonging to the category of small and medium-sized businesses are granted the right to interest-free installment payment of tax payments within 6 months.

In addition, in order to ensure the stability of budget revenues, the base rates of personal property tax, tax on the use of natural resources, non-agricultural land tax, excise tax rates, and some taxes are indexed within the inflation rate.

The law was approved by senators.