Tax Committee provides info on changes in tax policy in 2023

The State Tax Committee has provided information on changes to value added tax, profit tax, turnover tax, excise tax and personal income tax. Kun.uz summarized everything in one article.

Reportedly, the revenues of the 2023 budget are planned based on the main macroeconomic indicators, the expected prices of raw materials on the world market, changes in the tax policy, and the improvement of the tax and customs administration.

In the tax policy set for 2023, the basic tax rates of profit tax are kept at 15%, personal income tax at 12%, and property tax at 1.5%.

At the same time, in order to increase investment attractiveness in the republic, it is proposed to make a number of important changes in determining the tax policy of 2023.

The following are proposed in terms of lowering and unifying tax rates and creating additional facilities in order to further improve the business environment.

At the same time, it is predicted that in 2023, the income from this tax will be 16 trillion soums more than this year.

Also, in order to create additional benefits for entrepreneurs, the rates of turnover tax from 4% to 25% for 14 types of activity are unified and set to a single 4%.

For information, during the conversation with businessmen, the President put forward the proposal to categorize enterprises with annual turnover up to 1 billion soums as micro, up to 10 billion soums as small and up to 100 billion soums as medium businesses. Based on this, a number of benefits are offered to businessmen.

In this case, depending on the region and type of activity, reduced rates of 1% to 3% will be maintained.

Entrepreneurs with a turnover of up to 500 million soums have the right to pay a fixed tax of 20 million soums a year, and those with a turnover of more than 500 million soums – 30 million soums in equal monthly installments.

These taxpayers are exempted from accounting and dividend tax.

Along with this, in order to stimulate the development of small and medium-sized businesses, it is planned to reduce the profit tax rate by 2 times for 1 year for entrepreneurs belonging to the category of small businesses whose turnover exceeds 1 billion soums.

To ensure the stability of local budget revenues, fixed tax rates and bases are supposed to be indexed within inflation or by 10%. In this case, it is planned to implement the indexation of excise tax rates from February 1, 2023.

The gradual abolition of tax benefits is also ongoing.

In particular, from April 1, 2023, exemptions from VAT for a number of services provided at the expense of budget funds are being canceled.

At the same time, the expiration of the tax and customs privileges granted by other regulatory legal documents was also taken into account in the budget revenues.

Due to the improvement of tax and customs administration, the amount of approximately 1% of the gross domestic product or 9.2 trillion soums is provided in the additional planned budget revenues.

Changes to the excise tax legislation

From February 1, 2023, the excise tax rates on oil products and manufactured alcohol and tobacco products will be indexed to 10%.

Starting from January 1, 2023, the excise tax on the production of alcohol products (except soft drinks) will be calculated based on the percentage of ethyl alcohol in the excised product. In this case, the unit of measurement of the produced alcohol product was defined as “liter” (previously it was “daL”).

In 2022, the rate of excise duty on vodka, cognac and other alcohol products was set at 138,000 soums per 1 dal (or 13,800 soums per 1 liter).

In 2023, the excise tax rate for these products is set at 34,500 soums per liter of ethyl alcohol without added water in the excise goods.

For example, the share of ethyl alcohol in vodka is 40%, the amount of excise tax for 1 liter is 13,800 soums (34,500 soums x 40%), and from February 1, 2023, taking into account indexation – 15,200 soums (38,000 soums x 40%).

From January 1, 2023, the rate of excise tax on the following will be increased by 5 times and will amount to 7,450 soums per 1 liter:

- rectified ethyl alcohol from food raw materials;
- technically rectified ethyl alcohol from etheraldehyde fraction;
- ethyl alcohol from the main fraction.

From January 1, 2023, the excise tax rates on the import of alcohol and tobacco products have been reduced by 5%.