MPs in the Legislative Chamber approved in first reading on Oct. 27 a bill on supporting business owners that would cap tax penalties at the amount of the underlying tax debt.
Presenting the bill, Deputy Minister of Economy and Finance Ahadbek Khaydarov said: “A rule is being implemented under which the penalty accrued on tax not paid by the deadline must not exceed the amount of unpaid tax.” The rule was discussed at a meeting with the president in early May.
The bill also requires tax authorities to lift automatically any suspension of transactions on a taxpayer’s bank accounts once the taxpayer submits requested explanations or an amended tax return following a desk audit. The Legislative Chamber said the measure is meant to reduce administrative restrictions on business.
It would also abolish the commission charged on tax payments made through payment organizations and payment systems, expand electronic services in taxpayers’ personal accounts, clarify how real estate lease agreements are registered with tax authorities and widen accelerated VAT refunds for large taxpayers. The bill must pass further legislative stages before taking effect.
Background: Under Article 110 of the Tax Code, a penalty accrues for each day of delay at 1/300 of the Central Bank’s rate on the unpaid amount. The current code, adopted in 2019, has no general cap on total penalties, although Article 120 of the 2007 code limited them to the amount of the debt. A presidential decree of Aug. 27 announced a “Second Chance” economic amnesty that writes off accrued penalties for small and medium-sized businesses that fully repay tax debts by Dec. 31, 2026.
