Uzbekistan considers cashback system for housing purchases

In Uzbekistan, the introduction of a cashback system for housing purchases is under consideration. The issue was raised on 29 August during an open dialogue organized by the Chamber of Commerce and Industry with representatives of the construction sector.

Photo: Kun.uz

According to Davron Vakhabov, Chairman of the Chamber of Commerce and Industry, only about 10 percent of housing is purchased with value-added tax (VAT) included, while the remaining 90 percent is bought without taxation.

He emphasized that real estate should be purchased with VAT applied. “There are ideas about introducing a 4–5 percent cashback for individuals. In that case, they would approach the developer and request an invoice in order to receive 5–6 percent cashback from the purchase amount. Perhaps this could help change the situation?” Vakhabov said.

The measure aims to reduce the share of the shadow economy in the construction sector.

Earlier, it was reported that Uzbekistan plans to phase out the use of cash in housing transactions. According to Mubin Mirzaev, First Deputy Chairman of the Tax Committee, this step is intended to combat the shadow economy.

Prepared by: Дониёр Тухсинов

#tax #real estate #housing #cashback