19:35 / 21.08.2021
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“228 thousand small businesses do not have accountants” – President comments on business problems, fines and VAT

In Uzbekistan, it is necessary to take serious measures to simplify tax administration, improve the control functions of tax authorities.

This was announced on August 20 by President Shavkat Mirziyoyev during a meeting with entrepreneurs.

“From January 1 next year, the tax authorities will launch a reporting service for business representatives through their electronic programs. Currently, 228,000 small businesses do not have accountants. As a result, about 32,000 entrepreneurs were fined for filing tax reports with deficiencies. The procedure for applying financial sanctions for late submission of reports will be completely canceled,” the head of state said.

The President also spoke about the fines imposed by the tax authorities.

“I am also concerned about the increase in the number and size of some of the fines imposed by the tax authorities. So, if last year, according to the results of cameral control, 336 enterprises were fined 51 billion soums, then in the first six months of this year, over 3 thousand entrepreneurs were fined more than 900 billion soums,” he said. 

According to the current procedure, entrepreneurs, along with reporting on value added tax, are forced to separately apply to the tax authorities in order to return the difference in VAT.

“This directly affects the activities of 14 thousand entrepreneurs, makes them waste time and effort. Finance Minister Ishmetov, Chairman of the State Tax Committee Kudbiyev should study this issue in detail and, starting next year, introduce the practice of VAT refund without providing additional documents,” Mirziyoyev said.

As it became known, the head of the SAG Agro enterprise Kamol Abdullayev and more than 200 other entrepreneurs were asked to consider the possibility of offsetting the value added tax paid to the tax and customs authorities.

“For example, the SAG Agro enterprise, having an advance payment of 700 million soums on its balance sheet, had to pay an additional 1.4 billion soums to the customs. Therefore, starting next year, the electronic databases of the tax and customs services will be integrated with each other for calculating VAT. That is, excess payments to the tax authorities for VAT will be taken into account when paying customs duties. More than 10 thousand entrepreneurs will be able to take advantage of this privilege,” the head of state concluded.

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