A proposed tax restructuring on singers and entertainers in Uzbekistan has caused significant debate, with new regulations requiring performers to pay taxes on income earned from weddings and private celebrations.
Key Aspects of the Proposed Tax System
- Per-Performance Tax: Starting September 1, 2026, singers will be required to register all performances through a mobile application and pay taxes on a "one service – one payment" basis.
- Gradual Implementation: By 2029, these taxes are expected to be automatically deducted from linked bank cards.
- Shift from Tax-Free Status: Officials are aiming to eliminate the "shadow economy" within the entertainment industry, arguing that after decades of tax exemptions, it is unfair for entertainers to not contribute taxes similarly to other citizens.
- Penalties and Reporting: Failure to report income will result in penalties, and whistleblowers who report unregistered performances can receive 20% of the collected fines as a reward.
Outrage and Reactions from singers
Popular singer Yulduz Usmonova expressed strong opposition, highlighting the high costs and effort involved in creating songs. She even told the authorities not to engage them for government organized festivity events Independence Day, Navroz, where singers are “requested to sing for free”. She raised concerns about the fairness of the system, stating that copyright protection and revenue distribution should be addressed first, arguing she rarely sees income from her popular works, and that taxing performances while not addressing these issues is unjust.
Calls for Independence: Singer Jahongir Otajonov indicated a willingness to pay taxes but expressed anger toward potential overreach by the "Uzbekconcert" agency, stating, "I will pay taxes, but let ‘Uzbekconcert’ not disturb me," arguing for independence in their work. He also criticized the requirement to pay taxes even for free performances, calling it "illogical" to lose money while providing a service for free.
Other singers have voiced apprehension about the administrative burden of registering every service and the fairness of paying taxes when they incur significant expenses to perform. Some singers view the move as another way for the state regulator, Uzbekconcert, to exert control over their independence.
Government Justification
Officials and proponents of the bill argue the change is a matter of social justice:
- Equity with Other Professions: Critics point out that a kindergarten teacher earning a modest salary pays a mandatory 12% income tax, while entertainers can earn a teacher's annual salary in one night without contributing to the budget.
- Economic Transparency: The Tax Committee states that the industry has enjoyed "tax-free status" for decades, and the new law is strictly forward-looking, not taxing previously accumulated wealth.
The government has indicated the focus is on future earnings rather than taxing wealth accumulated during the previous tax-free decades.
Follow us on:
