The Council on Tariff and Non-tariff Regulation commented on the proposal of JSC Uzbekneftegaz to increase excise tax on the import of petroleum products. The application is available on the website of the Ministry of Investments and Foreign Trade of Uzbekistan.
The application indicates the obligations of Uzbekistan upon accession to the multilateral Free Trade Agreement concluded within the framework of CIS. Thus, according to the protocol for applying the agreement between the parties, on December 31, 2020, the transition period adopted by Uzbekistan for the unification of excise tax rates on domestic and imported goods expires.
“Prior to the specified period, the excise tax rates set for the produced and imported goods must be brought to a common denominator,” noted in the statement.
“In this regard, during the regular meeting of the Council on Tariff and Non-tariff Regulation held at the Ministry of Investment and Foreign Trade on 12 May this year, the heads of relevant ministries and departments have been informed of the need to fulfill the obligations assumed by the republic in the unification of excise tax and the preparation of relevant measures,” the Council informs.
“In case the same tax rates are applied in the production and import of goods, equal treatment will be ensured both for the domestic and imported products, which will contribute to fair competition,” the statement notes.
According to the Ministry of Finance, the current excise tax rates for petroleum products produced in the country differ from those imported. Thus, if a producer of 1 ton of AI-92 gasoline pays 250,000 soums of excise tax, importers pay excise tax at a rate of 5 percent of the customs value of the gasoline, which is estimated to be 121,500 soums if a cost of 1 ton of imported petrol equals $240.
For this reason, the Ministry of Finance had previously reported that it is working with other interested ministries and departments on establishing an equal excise tax rate for the imported and domestically produced petroleum products.
