Yuliy Yusupov proposes to liquidate the Ministry of Economy and Industry 

Economist Yuliy Yusupov proposed to liquidate the Ministry of Economy and Industry of Uzbekistan calling it a “wrecking organization”. He wrote about this on his Facebook page.

In his opinion, there will be no development in the country unless the ministry is liquidated. The reason for such comments of the expert was a draft document in which the ministry suggests introducing the category of “medium-sized businesses” and exempting such enterprises from VAT. 

“It seems that the Ministry of Economics and Industry has firmly decided to take the first place in the issuance of draft normative acts that ignore the laws of the economy and impede the economic development of the country. After incredible efforts were made to transfer tens of thousands of enterprises to this unpleasant and difficult tax, finally (with a year delay), decisions were made to reduce the VAT rate and abolish a huge number of benefits and exceptions. And now all this is proposed to be forgotten and returned to the situation before the reform. It is just fantastic!” Yusupov wrote.

He notes that such measures will only lead to an increase in the tax burden, since there should not be any privileges and exceptions when paying VAT.

“If non-payers appear in the chain of VAT payment, then the tax burden falls on the following links. That is, VAT will not go anywhere, it will still be paid in full only by other entrepreneurs. Also, because of the gap in the payment chain, situations will arise when the previously paid VAT cannot be taken into account. That is to say, the total tax burden will increase even more. Therefore, when paying VAT there should not be any benefits and exceptions. This is the alphabet with which, for some reason, officials of the ministry are not familiar,” the expert concluded.