Uzbekistan to raise excise tax to partially cover losses from VAT reduction

Source: Xinhua| 2019-09-26 21:14:03|Editor: Li Xia
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TASHKENT, Sept. 26 (Xinhua) -- Uzbekistan plans to increase excise tax rates in order to compensate expected losses due to a reduction of the value-added tax (VAT), a Uzbek official said on Wednesday.

The excise tax increase could bring additional income to the budget in the amount of 200 billion soums (around 21 million U.S. dollars), said Deputy Finance Minister Dilshod Sultanov.

President Shavkat Mirziyoyev signed a decree to reduce the VAT rate from the current 20 to 15 percent on Wednesday, which would go into effect on Oct. 1.

The state budget would lose about 10 trillion soums (about 1.05 billion dollars) in 2020 due to the decreased VAT, according to the ministry.

Sultanov said, "We expect that the businesses will welcome it and there will be an expansion of the tax base."

Uzbekistan has been carrying out a range of economic and tax reforms to boost private businesses and attract foreign investments since Mirziyoyev assumed office in 2016.

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