Tashkent, Uzbekistan (UzDaily.com) -- From 1 October 2023, Uzbekistan will cancel the system of applying the tax gap coefficient for VAT refunds (Tax Gap). This was stated by President Shavkat Mirziyoyev at a meeting with entrepreneurs on 18 August.

The head of state said 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.

Shavkat Mirziyoyev noted that the Chamber of Commerce and Industry and the business ombudsman, together with representatives of the spheres, will introduce a rating of openness of entrepreneurs.

From 1 January 2024, enterprises with a high rating will be exempted from all types of inspections. “They will be refunded the excess part of the paid VAT during the day. I think it will be fair,” the head of state said.