We need to support entrepreneurs, not increase taxes - President

Entrepreneurs in Uzbekistan will now be allowed to pay their taxes in two installments per year, as discussed today, April 18, at a videoconference chaired by President Shavkat Mirziyoyev. The meeting focused on measures to mitigate the impact of global economic shocks on Uzbekistan's sectors and industries.

The President addressed concerns raised by entrepreneurs, particularly regarding the impact of increasing coefficients on land tax and rent payments. He stressed the importance of evaluating these increases based on the financial conditions and capabilities of local entrepreneurs.

“Increasing revenue should not come from raising tax rates. On the contrary, by supporting entrepreneurs and expanding the tax base, revenue will grow, and entrepreneurs will be satisfied,” said the head of state.

The meeting also highlighted the need for further reforms in the tax and customs sectors. Officials were tasked with involving qualified experts, scientists, and entrepreneurs in a public council to make substantial proposals aimed at elevating tax and customs policy and administration.

The President emphasized that the powers of ministers to adopt departmental instructions and documents should be clearly defined.

“The most stable relations are those defined by law, new reforms by presidential decree, and the development of sectors and regions by government decree. Only departmental documents will be adopted to implement them. This will ensure that the results of our reforms reach the people faster,” President Mirziyoyev said.

Special attention was also given to the importance of creating equal conditions for business.

“We need to pave the way for local enterprises, increase production, and create conditions that allow them to enter high-value markets with new products,” Mirziyoyev stated.

However, it was noted that some goods are entering Uzbekistan's markets at artificially low prices, undermining local manufacturers. For example, a small refrigerator made in Uzbekistan, which costs $220 to produce, is sold for an average of $250, with $30 in VAT paid. In contrast, the same imported refrigerator is listed at $25 with only $3 in VAT, meaning local manufacturers are paying 10 times more tax than imports.

With the new decree, the procedure for determining the customs value of goods imported into Uzbekistan will now be fully aligned with international standards.