“It is not correct to say that VAT has affected car prices” – Deputy Chairman of the State Tax Committee

The Deputy Chairman of the State Tax Committee Fazliddin Umarov touched upon the issue of the VAT impact on the prices of UzAuto Motors cars.

“It is not correct to say that VAT has affected prices. Previously, citizens had to pay a 3% tax on car registration when they bought a vehicle. This practice was abandoned. This amount, in turn, was transferred to the automotive industry. There was also an excise tax on car manufacturing. Excise tax was also abolished.

If VAT was a major factor contributing to the growth of car price, then why would price of Damas increase by 20 percent instead of 15 percent, and prices of other luxury cars would not? Do they not have VAT?” said Umarov.

According to the Deputy Chairman of the Tax Committee, excise tax on car manufacturing is 3%.

“The entire 15% VAT is not covered by the enterprise itself. The cost of production of the enterprise will be taken into account. The overall VAT burden will not exceed 5-6%,” Umarov added.