President Shavkat Mirziyoyev on February 13 signed an Organizational Measures to Radically Improve Tax Legislation Decree.
The document notes that "the state of affairs in terms of finding additional reserves for increasing the incomes of the central and local budgets, introduction of modern ICTs in the process of tax administration, implementation of the best proven methods of tax legislation and administration" remains unsatisfactory in Uzbekistan.
"This points to the need to further improve the activities of the tax authorities, including interaction with taxpayers and other government agencies, timely and full levying of tax debts, introduction of effective modern forms and methods of tax control," the decree said.
The document formed the Republican Commission for drafting of the Tax Code of the Republic of Uzbekistan in a new edition, headed by the Prime Minister Abdulla Aripov and the working group on improving tax legislation and tax administration.
When drafting legal acts the President instructed to pay special attention to:
- drafting norms in line with the generally accepted international norms and standards, as well as with the principles of a market economy;
- revision of the mechanisms of tax administration with the introduction of widely used best international advanced and proven forms and methods of tax control, including through engaging international experts and consultants;
- implementation of international tax norms in the national tax legislation, taking into account strategic interests and the current stage of socio-economic reforms in Uzbekistan, as well as the implementation of an effective state tax policy;
- inspection of legal acts regulating taxation and tax administration issues, with a view to exclude norms that may allow double interpretation;
- unification of tax legislation increasing the direct action norms;
- simplification of the taxation system, improvement of tax administration, as well as ensuring consistent protection of the taxpayers’ rights;
- increasing the tax collection rate, ensuring full levying of due taxes and fees to the state budget and state trust funds, ruling out ways for tax evasion;
- cutting the general tax burden on economic entities, enhancing the stimulating role of taxes in the development of production and services sectors, ensuring rational and rational use of resources, abolishing inefficient taxes and fees;
- introduction of methods that promote maximum leveling of the tax burden on small and large businesses;
- simplification of the mechanism for calculating the personal income tax on the basis of a critical study of the current taxation system, taking into account the best practices of foreign countries;
- establishment of clear boundaries of the concepts of "tax privilege" and "tax preferences", the terms for temporary benefits, as well as reviewing and abolition of inefficient and obsolete tax incentives;
- ensuring the stability of the tax system, allowing entrepreneurs to reasonably forecast the development of business in the medium term.
The Republican Commission and working groups engaging scientists and qualified specialists - experts, representatives of businesses and public organizations by studying advanced international experience and following the results of the study of the activities of tax authorities, will be required to draft Uzbekistan’s Fiscal Policy Improvement Concept and by July 1 - the draft Tax Code in a new edition.