Ministry of Economy and Finance presented the main directions of tax and customs policy
Tashkent, Uzbekistan (UzDaily.com) -- The Ministry of Economy and Finance of Uzbekistan presented the main directions of tax and customs policy for 2024-2026.
According to the department, the government of Uzbekistan in 2024 will maintain the current rates of income tax (15%, 20% for some categories), personal income tax (12%), social tax (25% for budgetary organizations, 12% for others), and turnover tax (4%).
Uzbekistan will also maintain the fee rates for the transit of cars through its territory and the fee for the right to sell alcoholic beverages. It is planned to maintain the rates for VAT (12%), excise tax on mobile communication services (10%), land tax on agricultural land (0.95%), and property tax on legal entities (1.5%).
From 1 January 2024, Uzbekistan plans to increase the excise tax rate on alcohol from 7.4 thousand to 14.9 thousand soums per liter. It is also envisaged to increase the excise tax rate on manufactured alcoholic products by 5% and reduce the excise tax on imported vodka, cognac and other alcoholic beverages by 5% from July 2024. These changes are aimed at reducing the gap between rates in accordance with the requirements of the World Trade Organization (WTO).
From 1 April 2024, it is planned to index the excise tax rate on gasoline with a high content of harmful gases. Prices for AI-80 gasoline will increase by 1%, and methane will increase by 3%. At the same time, the excise tax rate on gasoline with an octane rating of 91 and higher will remain unchanged.
Manufacturers of carbonated drinks containing sugar will be subject to an excise tax of 500 soums per liter from 1 April 2024. The funds received from the excise tax will be directed to the Medicine Development Fund.
It is proposed to introduce a recycling fee for car tires, which will depend on the weight of each tire and amount to 0.3% of the sizes of basic estimated value (currently 990 soums) per 1 kg. This means that the fee for passenger cars with tires from R13 to R20 will be from 6.2 thousand to 16.2 thousand soums, and for trucks with tires from R16 to R18 - from 11.3 thousand to 58.8 thousand soums. Funds raised from this will be used to finance Yashil Makon projects and environmental protection.
It is also proposed to introduce a road tax in the amount of five times the annual gross allowance (1.65 million soums) for trucks weighing more than 10 tons. Funds collected from this fee will be directed to the highway development trust fund.
Excise tax rates on alcohol and tobacco products will increase by 12%.
From 1 January 2024, changes will be made to the tax system in Uzbekistan:
From 1 January 2024, the tax rate on the volume of water used for irrigation of agricultural land and fish farming will be set at 80 soums per cubic meter without water meters. If meters are available, a reduction factor of 0.7 will be applied to the rate.
The cost of water for industrial enterprises, power plants, public utilities, as well as used for car washing and beverage production (both alcoholic and non-alcoholic) will increase by 12%. For other enterprises and individual entrepreneurs, the rate will increase by 30%.
From 1 February 2024, it is planned to increase the tax rates of fixed amounts of income tax for the population by 10%.
For property lessors, from 1 January 2024, minimum monthly rental rates for individuals may be established depending on the region and type of leased property.
From 1 April 2024, it is proposed to introduce minimum rental rates for contracts for the free use of real estate for both individuals and legal entities. District and city councils of people’s deputies may receive the right to apply an increasing coefficient based on market rental prices. 10% of income tax from leasing property to individuals will be transferred to the budget of the mahalla (local government).
From 1 January 2024, a new turnover tax rate has been established in a fixed amount, which will be 25 million soums per year for taxpayers with a turnover of up to 500 million soums, and 34 million soums per year if the turnover exceeds 500 million soums.
When calculating property tax for individuals from 1 January 2024, non-residential properties will also be taken into account. A taxation procedure will also be introduced, similar to the taxation procedure using a minimum amount when calculating property tax for legal entities.
Property tax for legal entities
Minimum tax base values for buildings will be established depending on the region. In Tashkent - 3 million soums per 1 square meter, in regional centers - 2 million soums, in other cities and rural areas - 1.2 million soums. These values have been increased from previous rates.
Property tax for individuals
From 2024, property tax rates and basic land tax rates for individuals will increase by an average of 12%. The amount of tax calculated on the basis of the cadastral value determined in 2018 cannot exceed the amount of tax accrued for 2023 by more than 1.3 times.
Subsoil use tax
Special types of fixed tax rates for subsoil use tax will be indexed by 12%. For enterprises with a state share, tax rates are established for various types of subsoil use.
The tax rate on limestone intended for cement production has been reduced from 22,500 soums to 11,250 soums per ton. Reduced tax rates for coal-only cement plants will also be eliminated.
From 1 April 2024, some VAT benefits will be abolished, including the import and turnover of medicines and medical services. Also, the “zero” VAT rate on water supply, sewerage, sanitation and heat supply services for the population has been abolished. Foreign individuals providing services on the territory of Uzbekistan will be subject to VAT.
From 1 April 2024, the preferential tax rate for income tax (7.5%) and turnover tax (2%) for e-commerce participants will be abolished. This means that e-commerce participants will be subject to income tax and turnover tax at the general rates applicable to other businesses.
The government plans to establish a procedure for taxing the self-employed at a rate of 4% (like the turnover tax for individual entrepreneurs) if their annual income exceeds 100 million soums. Therefore, it is planned to compare the types of activities of individual entrepreneurs and the self-employed and then revise their list.
Also, the zero rates of customs duties provided for the import of certain food and non-food products, new construction and special equipment, as well as vehicles for transporting goods and tourist services are expiring.