Financial sanctions in the Tax Code are being reduced

Amendments are being introduced to the Tax Code of Uzbekistan to reduce financial sanctions for fiscal offenses. The Law "On Amendments to Article 2271 of the Tax Code of the Republic of Uzbekistan" was reviewed and approved today, May 18, at the fifty-second plenary session of the Senate.

The proposed amendment further liberalizes the penalties for tax violations. Specifically, it addresses breaches of requirements related to displaying fiscal signs, using automated accounting devices, integrating with tax authorities' information systems, and mandatory digital identification of goods by manufacturers, importers, and sellers. For the first violation of these procedures, the fine is set at two percent of the net income from the last reporting quarter.

If the same offense is repeated within a year after the initial penalty, the fine increases to twenty percent.

Previously, entrepreneurs were fined the entire net income of the last reporting quarter for such violations. The new amendment reduces financial penalties for fiscal procedure violations by almost 98 percent.

Senators believe that the adoption of this law will make penalties for tax legislation violations more reasonable and create more favorable conditions for business activities.