Tashkent, Uzbekistan (UzDaily.com) -- From 15 to 26 August 2022, Uzbekistan hosted the mission of the International Monetary Fund (IMF) to improve the tax policy in the field of value added tax.

The head of the IMF mission, Professor Rita De La Feria, held a meeting with the Minister of Finance of the Republic of Uzbekistan Timur Ishmetov.

The missions also included IMF expert Frederic Tremblay and IMF Permanent Representative Modestas Kazeliauskas.

During the meeting, they discussed the results achieved, the opportunities available for further improvement of tax policy, the fight against tax evasion, as well as the use of information technologies to ensure both tax collection and the progressiveness of VAT.

In particular, it was noted that modern VAT, in order to ensure its progressiveness, provides for VAT refunds to socially vulnerable segments of the population. This tool is much more effective than providing tax benefits, as it provides targeting.

The Mission also met with the leadership of the State Tax Committee and the State Customs Committee. During the meeting, issues of administration, compliance with tax legislation by taxpayers, as well as the use of information products were discussed.

During the mission, Professor Rita De La Feria held a meeting at the Fiscal Institute under the State Tax Committee. During the meeting, issues of tax ethics and policy in the fight against fraud, as well as the expansion of the VAT tax base were discussed.

It was noted that the provision of tax benefits, differentiated rates do not give effectiveness in providing support to low-income segments of the population, as they are not accompanied, as a rule, by a reduction in prices.

IMF representatives also met with auditors and tax consultants at the Ministry of Finance. During the meeting, further VAT reform, lowering the threshold for switching to VAT, as well as other issues related to VAT enforcement practice were discussed