Tuesday, 28, May, 2024

Value-added tax (VAT) is expected to be cut in Uzbekistan, with the range of tax payers to be expanded and tax reliefs to be scrapped. This is stated in the December 29 President's decree which approved the main macroeconomic figures and parameters of the 2018 state budget.

Proposals to cut the VAT rate are expected to be prepared by the Finance Ministry, the Tax Committee, the Customs Committee and the Economy Ministry together with the National Project Management Agency until July 1.

Revenues from VAT in 2018 are projected at 22.019 trillion soums or over one third of all revenues (62.229 trillion soums).

VAT in Uzbekistan was introduced in January 1, 1992. Initially, it was 30%, in 1993-1994 - 25%, and since 1998 it has been 20%, with zero rate VAT, as well as relief or partial exemption from VAT also applied.
The December 29 Decree also envisages scrapping from from April 1, 2018 of VAT reliefs granted to companies added to localization programs, including on current projects.

In addition, reliefs for corporate income tax, property tax and single tax payment presented to exporting companies will also be canceled depending on the share of exports.

Until July 1, it is also planned to adopt Uzbekistan's improved Fiscal Policy Concept, which will take into account the best foreign practices, aimed at ensuring transparency of the budget process.

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