ANNUAL REPORT PRINCIPAL AREAS OF REFORM OF THE TAX SYSTEM IN OUR COUNTRY
Uzbekistan tax regime global economic system
By: Feruz Hakimov
Worth Noting:
- Markets and shopping malls, cinemas, catering, public transport, sports and recreation institutions, as well as legal entities engaged in passenger transport, household services, leasing of premises, including banquets, for the exemption from property tax and land tax. As of May 15, 2020, the collection of existing debts on taxes, fines and penalties for violations of tax legislation from micro and small enterprises has been suspended.
- In remote areas a number of opportunities have been introduced to support small businesses operating to serve the population by paying them extra. In addition, the Decree of the President of the Republic of Uzbekistan dated April 3, 2020 “On additional measures to support the population, sectors of the economy and businesses during the coronavirus pandemic” provides a number of other benefits.
Currently, another important Renaissance is taking place in our country. Therefore, the words “New Uzbekistan” and “Third Renaissance” resonate in our lives and inspire our people to great goals. SHAVKAT MIRZIYOEVIN THE TAX SYSTEM IN PANDEMY CONDITIONS IN OUR REPUBLICAPPLIED TAX BENEFITS AND THEIR EFFECTS if we look at the large-scale reforms underway in our country today, we may encounter many innovations.
But the pandemic is still causing a lot of losses, not only for us, but all over the world, for wide-ranging negotiations. From the point of view of Uzbekistan, during the COVID19 period, we faced a number of problems in our economy. In the countries of the world, we also have various economic crisesr.
The results of numerous scientific studies devoted to the analysis of the socio-economic consequences of the crisis on the world economy, as well as on the national economy in particular, have been published.
A number of scientific studies on the social problem and its economic consequences, which began in China in early 2020, then spread to more than 180 countries and reached the level of a coronavirus pandemic, posing a serious threat to human life.is being increased. In such a dangerous situation, new programs have been developed with special attention to each area.
In order to maintain the economic rating, the government has introduced a number of new measures, including the introduction of temporary benefits for each sector, additional payments, free medical care. In particular, the President of the Republic of Uzbekistan on May 18, 2020 “During the coronavirus pandemic, the population vIn accordance with the Decree “On the next measures to support business entities”, the state has developed a program that includes the following measures to support business. According to him: During the period from June 1 to September 1, 2020, the following will be exempt from property tax and land tax.
Small businesses, YATT (individual entrepreneurs), micro and small enterprises, manufacturers of excisable goods, government From May 1 to July 1, 2020, the social tax rate for micro and small enterprises will be reduced from 12% to 1% for legal entities with a state share of 50% or more in the share capital (authorized capital) of enterprises. In accordance with the Decree of the President of the Republic of Uzbekistan No.
PF-6029 dated 20.07.2020, a number of tax benefits were introduced as additional support to the population, benefits for families with children under 14, child care until the child reaches 2 years of age. The number of recipients of pensions and benefits under i has been increased by an additional 10% from 1 June 2020.
It is true that the application of this privilege in turn supports the population during the pandemic and protects the interests of the people. In this regard, long-term tax concepts have been developed to develop and ensure the stability of the national economy, and accordingly:
Markets and shopping malls, cinemas, catering, public transport, sports and recreation institutions, as well as legal entities engaged in passenger transport, household services, leasing of premises, including banquets, for the exemption from property tax and land tax. As of May 15, 2020, the collection of existing debts on taxes, fines and penalties for violations of tax legislation from micro and small enterprises has been suspended.
In remote areas a number of opportunities have been introduced to support small businesses operating to serve the population by paying them extra. In addition, the Decree of the President of the Republic of Uzbekistan dated April 3, 2020 “On additional measures to support the population, sectors of the economy and businesses during the coronavirus pandemic” provides a number of other benefits.
In accordance with this decree, with tourist and hotel activities Entrepreneurs are exempted from paying land and property taxes until the end of this year, income tax and social tax for individual entrepreneurs who were forced to cease their activities during the quarantine period have been suspended, turnover tax for small businesses decreased by 50% compared to the previous month, land tax , property tax, social tax and water tax payment deadline has been postponed until October 1 this year, flour, vegetable oil, meat until the end of this year and the imposition of customs duties and excise taxes on imports of basic consumer goods such as dairy products, sugar, hygiene products, and in the cases established by the State Tax Committee of the Republic of Uzbekistan in 2020, no penalty for delay in submission of tax returns was introduced. UZBEKISTAN’S ECONOMIC DEVELOPMENT INDICATORS BEFORE THE CORONAVIRUS PANDEMIA Research.
The results show that before the onset of the coronavirus pandemic, there were positive shifts in the world economy and national economies, signs of sustainable development. In recent years, the rate of economic growth in the world economy has averaged around 3-4%. Over the past two decades, real GDP growth in Uzbekistan has averaged 6.5%. Growth is a measure of a country’s self-sufficient economic regime, as well as a planned economy controlled by the state was achieved.
The state budget surplus would create large budget reserves and external reserves that supported macroeconomic stability. In order to mitigate and prevent the negative impact of the global crisis on the socio-economic development of the country, the President of the Republic of Uzbekistan “On additional measures to support the population, sectors of the economy and businesses during the pandemic” were adopted and are being implemented.
According to the decree, in the fight against the spread of coronavirus infection in the world, unprecedented measures have been taken to curb the pandemic in the country by restricting the movement of people and shutting down enterprises in order to ensure public safety.202In 2015, the structure of the state budget of the Republic of Uzbekistan amounted to 132,938.1 billion soums, despite the pandemic, the forecast of state budget revenues by the end of 2021 is planned to reach 147,202.3 billion soums.
Maintaining the basic tax rates in the tax policy for 2021, including excise tax, land tax, personal income tax rates in the Tax Code, abolition of excise tax on 73 types of goods, exports buyer support and other measures. The bill was prepared by the Ministry of Finance. The excise tax rate for the current year is 46,955.4 billion soums.
Soums (31,177.4 soums in 2020).THE EFFECT OF THE TAX BENEFITS APPLIED TO THE BUDGET IN RELATION TO THE KORANAVIRUS PANDEMIDYGDP growth was projected to be higher than 5 percent at the beginning of the year, with the pandemic likely to reach 1.8 percent this year.b stands. The negative consequences of the pandemic led to a decrease of 3 trillion soums. There have been some changes in tax revenues due to the fact that the deadline for payment of property and land taxes by individuals has been postponed to October 15, and about 195,000 individual entrepreneurs have been forced to suspend their activities. In particular, revenues from property and land taxes of individuals decreased by 3 times – from 130 billion soums to 40 billion soums.
Individual entrepreneurs are strictly defined Tax revenues fell by 84%, forcing more than 80% of them to cease operations, however, the pandemic did not significantly affect the state budget revenues of Uzbekistan in the I quarter, as budget revenues were formed mainly from the results of economic activity from December 2019 to February 2020.
These factors also affect the economy of Uzbekistan, which is part of the global economic system, which in turn has a negative impacti requires effective preventive measures to mitigate. At the same time, in 2020, GDP will grow by 1.6%, and Uzbekistan is therefore one of the few countries with a growing economy, but this figure is 4% lower than the forecast at the beginning of the year.
In the first quarter of this year, a number of measures are planned to restore economic activity, the forecast of 23.3 trillion soums was fulfilled to 23.8 trillion soums, the second the forecast for the quarter was about 21 trillion soums.
The negative effects of the pandemic have been somewhat mitigated by the prompt decision of the head of state and the government and the implementation of effective countermeasures. Due to this, instead of the projected tax revenue, the budget received 14.2 trillion soums at the end of two months. In addition, in 2022, compared to the base years, the amount of taxes collected in the budget is planned to reach 200 trillion soums. In addition, the State Budget for 2021The share of indirect taxes in the structure of revenues increased, providing 42.2% of total budget revenues.
According to the Ministry of Finance, the main directions of tax policy in 2021 are VAT (15%), income tax (15%, 20% for certain categories), personal income tax (12%), property tax from legal entities (2%). ), land tax for agricultural land (0.95%), social tax (business entities – 12% and the budgetorganizations – 25%), turnover tax rates (base rate 4%) will be maintained in 2022. This figure is estimated to be positive compared to the previous year. PROSPECTS FOR RECONSTRUCTION AND DEVELOPMENT OF THE NATIONAL ECONOMY IN THE TRANSITION TO “STRATEGY OF MOVEMENTS – DEVELOPMENT STRATEGY” Although 2 years have passed, the pandemic is not over yet. In this regard, the level of health of the population is a priority for any country.
Until today the total number of diseases in our country is growing day by day, and new cases are constantly monitored. In addition, quarantine restrictions have not been lifted. The population is covered by the vaccination process, and due to the deterioration of the epidemiological situation, the cost of combating SOVID19 is expected to increase from 3 trillion soums to 4.3 trillion soums.
Additional funds are allocated from the national budget. In addition, the process of vaccination against SOVID19 in Uzbekistan. The country’s economy is expected to grow by 5% in 2021 and by 5.5% in 2022 in the context of the rapid recovery and rapid recovery of industry, services, investment and private consumption. Measures to diversify production by expanding with new products and activities, increase the range and quality of products and services, increase their value-added capacity, expand sales channels and markets, provide employment, self-employment measures are being widely introduced.
As important as the role of taxes in the formation of the state budget, the introduction of tax preferences, the development of entrepreneurial activity, a positive change in the activities of a number of manufacturing sectors has led to an increase in exports throughout the country. At the Tashkent International Investment Forum, which brought together more than 1,500 foreign investors on March 24-26, investment in our country?
In order to create an environment conducive to increasing the attractiveness of international projects worth $ 8 billion, the issues of increasing their volume to $ 70 billion are included in the development strategy program. For investors, our country has once again proved that it is a comprehensively safe and legally guaranteed area. This, in turn, will undoubtedly have a significant positive impact on the tax sector.
The development strategy is complete in the tax system by 2030reforms are underway to transition to a digital system. In this regard, the principles of economic development and post-crisis development scenarios are controversial among scientists. In the first half of 2021, the inflation rate in the country decreased from 13.9% last year to 10.9%. With electricity and gas tariffs unchanged, improved food production has helped slow food price growth I is said. Given the continuation of tight monetary policy and unchanged energy tariffs, it has maintained inflation forecasts for 2021 and 2022 at 10 and 9 percent, respectively. In the first half of 2021, the current account balance increased due to increased imports of capital, intermediate goods and transport services.
The current account deficit forecast for 2021 and 2022 has been raised due to a significant increase in imports. In total, about 50 similar remote services have been launched on the e-government portal of tax authorities – my.soliq.uz. Without them, it is impossible to imagine today’s tax administration and the functioning of today’s system in general.
In conclusion, it should be noted that based on the experience of developed foreign countries, tax policy is an integral factor in the economy of any country. This system is based on the concepts of the country’s 1,3,5-year budget infrastructure predicts. Today, the results of the radical reforms will undoubtedly serve to provide full support to entrepreneurs, to ensure the well-being of the population, to prevent the negative consequences that may affect their activities. In this regard, we are witnessing that the reforms carried out by our President are bearing fruit. There are a number of strategic tasks for the further development of the new Uzbek economy.
New Development consistent structural reforms are needed to ensure the strategy. The main criterion put forward by the President is “From the Strategy of Action – to the Strategy of Development!” Science and innovation will become the main pillars in the implementation of the idea. I am confident that in the coming years, these efforts will be justified, that our country will develop in all respects and take a worthy place in the world community.
Feruz Hakimov is a Tashkent State University of Economics, finance and accounting faculty 2nd year student.
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