On October 31, the President of Uzbekistan held a meeting to review macroeconomic indicators, implementation of fiscal policy and expected execution of the state budget by the end of the year, the presidential press service said.
During the meeting, budget parameters for 2020 were also discussed.
“The tax reforms implemented at the initiative of Shavkat Mirziyoyev show positive results in revenue growth, which is also confirmed by international financial institutions,” the report reads.
According to official data, in Uzbekistan, the number of VAT payers increased by 12 times, income tax payers – by 6.5 times. As a result of a significant reduction in the tax rate on wages, the number of income tax payers increased by 700,000, and the volume of income from it doubled.
As part of these reforms, from October 1 of this year, the VAT rate has been reduced from 20% to 15%, a number of benefits were canceled. Starting from January 1, 2020, the single social payment rate levied on enterprises with a state share will decrease from 25% to 12%. As a result of these measures, in the coming year, 12.8 trillion soums will remain at the disposal of taxpayers.
The head of state noted the need for special attention to reduce the tax burden, as it will positively affect the economy and welfare of the population.
The spending part of the budget for 2020 was thoroughly discussed at the meeting. So, next year, it is envisaged to increase allocations from the state budget to the social sphere. Thus, expenditures on the healthcare system will grow by 18%, the education sector – by 10%, development of science – 47% compared to this year. Moreover, it is planned to implement about 100 targeted programs to support education, medicine, entrepreneurship, agricultural development, infrastructure improvement and other areas.
The necessity of introducing the draft law “On the State Budget for 2020” into the Legislative Chamber of Oliy Majlis, taking into account all the comments and conclusions, was emphasized.