A number of excise tax rates to increase from October 1

From October 1, excise taxes on alcohol and tobacco products, oil products, gas, mobile communications and polyethylene granules will rise in Uzbekistan.

According to Norma, in addition to the previously planned increase in alcohol and tobacco products, it will also affect oil products, gas, mobile communications and polyethylene granules.

It should be recalled that in July, it became known that excise tax rates on alcohol and tobacco products of local production would increase from October 1. Then they decided to raise alcohol on average by 10%, cigarettes – by 20%. Now, an adjustment has been made for certain positions.

So, the excise tax on vodka and other alcoholic products for 1 dal will be 98,000 soums, not 92,950 soums as planned, and with a volume fraction of alcohol over 40% – 148,000 soums per 1 dal (now – 140,300 soums). The rate on beer will be 10,600 soums per 1 dal, not 10,100 soums. 141,500 soums/1,000 pieces will be charged from tobacco products + 9%. Although initially they approved 141,500 soums/1,000 pieces + 4%. Thus, in relation to the current excise tax rates, vodka is indexed by 16% (10% was expected), beer – 15.2% (9.8% was expected), tobacco products – 20.05% (20% was expected). Indexation of excise taxes on alcohol, wine and cognac has not been reviewed, they will rise within the limits previously approved by the presidential decree.

In addition, from October 1, a number of other excise taxes on products manufactured in the country will increase – significantly for petroleum products, less radically for natural and liquefied gas, mobile communications and polyethylene granules.

Other rates (jewelry; silver cutlery; gasoline, diesel fuel and gas sold to the end consumer) will not increase from October 1.

It should be recalled that earlier Deputy Finance Minister Dilshod Sultanov told Kun.uz how the state intends to compensate for the losses from reducing VAT to 15%.

“Firstly, excise tax rates will be considered. New rates should cover 12-13% of budget losses. Due to an increase in excise taxes, we plan to collect about 200 million soums. Secondly, it is the liberalization of foreign economic activity. If rates are lower and benefits are canceled, then goods will be declared at higher prices, that is, at real prices. In general, this is the fight against shadow imports. Thirdly, these are electronic invoices. We also intend to expand the tax base and the circle of VAT payers,” he said.