Revenue should be increased not by raising taxes, but by supporting entrepreneurs
Uzbekistan
At the meeting held on April 18, the President addressed several issues concerning entrepreneurs. He emphasized the importance of studying the impact of increasing coefficients for land tax and rental payments on businesses, and of making decisions based on the capabilities and financial conditions of entrepreneurs.
“Revenue growth should not come from increasing tax rates. On the contrary, if we support entrepreneurs and expand the tax base, revenue will grow and entrepreneurs will be satisfied,” said the President.
Entrepreneurs will now be allowed to pay these taxes in two installments throughout the year.
The President also paid special attention to creating equal conditions for businesses:
“We must open the way for our local enterprises, increase production, and create opportunities to enter high-value markets with new products,” said the head of state.
However, it was pointed out that some goods are entering our markets at artificially low prices, which weakens the position of local producers.
For example, a locally produced mini refrigerator with a cost price of $220 is sold at an average of $250, for which $30 VAT is paid.
Meanwhile, an imported refrigerator of the same type is declared at an artificially low price of $25, resulting in only $3 VAT. That means the local producer pays ten times more tax than the importer.
According to a new decree, the procedure for determining the customs value of imported goods will now be fully aligned with international standards.
Criticism addressed to three or four agencies was also considered relevant for other ministries and sectors.
It was noted that bureaucracy still remains high in the systems of the ministries of ecology, agriculture, construction, energy, higher education, the cadastral agency, the roads committee, the industrial safety committee, and the construction inspection.
Leaders of these ministries and agencies were instructed to draw conclusions from the meeting and make services more accessible to the public and businesses.
Overall, all levels of leadership were tasked with maintaining regular dialogue with producers and exporters.
During the meeting, reports from regional and sectoral leaders, as well as feedback from entrepreneurs, were heard.
Entrepreneurs will now be allowed to pay these taxes in two installments throughout the year.
The President also paid special attention to creating equal conditions for businesses:
“We must open the way for our local enterprises, increase production, and create opportunities to enter high-value markets with new products,” said the head of state.
However, it was pointed out that some goods are entering our markets at artificially low prices, which weakens the position of local producers.
For example, a locally produced mini refrigerator with a cost price of $220 is sold at an average of $250, for which $30 VAT is paid.
Meanwhile, an imported refrigerator of the same type is declared at an artificially low price of $25, resulting in only $3 VAT. That means the local producer pays ten times more tax than the importer.
According to a new decree, the procedure for determining the customs value of imported goods will now be fully aligned with international standards.
Criticism addressed to three or four agencies was also considered relevant for other ministries and sectors.
It was noted that bureaucracy still remains high in the systems of the ministries of ecology, agriculture, construction, energy, higher education, the cadastral agency, the roads committee, the industrial safety committee, and the construction inspection.
Leaders of these ministries and agencies were instructed to draw conclusions from the meeting and make services more accessible to the public and businesses.
Overall, all levels of leadership were tasked with maintaining regular dialogue with producers and exporters.
During the meeting, reports from regional and sectoral leaders, as well as feedback from entrepreneurs, were heard.
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