Tashkent, Uzbekistan (UzDaily.com) -- President Shavkat Mirziyoyev signed a resolution introducing a number of changes to the tax legislation of Uzbekistan. This is reported by the Ministry of Justice.

According to the resolution, when refunding a negative amount of value added tax (VAT), the practice of applying the tax gap coefficient (tax gap) is prohibited.

The President also canceled the procedure for suspending the validity of a special VAT registration certificate.

The maximum income of business entities paying monthly advance payments on income tax is increased from 5 billion soums to 10 billion soums.

In August 2023, President of Uzbekistan Shavkat Mirziyoyev stated that he was aware of excessive interference in business affairs and corruption in the system.

“We will radically reform this system and completely change the approach of the tax authorities, as well as simplify tax administration to the extent possible,” he said.

The President noted that disciplined taxpayers are responsible for a partner who once made a mistake.

According to surveys, 70% of VAT payers call the system of applying the gap coefficient for VAT refunds, that is, the tax gap system, unfair, the President noted.

The President noted that Tax Gap torments entrepreneurs and causes corruption. He added that Tax Gap will be canceled from 1 October. The practice of suspending the VAT certificate will also be abolished.