Tashkent, Uzbekistan (UzDaily.com) -- The Law of the Republic of Uzbekistan “On the State Budget of the Republic of Uzbekistan for 2020” approved excise tax rates on manufactured goods (services rendered) for 2020.

For the first time in the country, excise tax rates are approved by law. Prior to this, they were approved by decrees or resolutions of the President. The last such document was the Decree of the President dated 26 September 2019 No. UP-5837, introducing excise tax rates from 1 October 2019.

Until 2019, excise tax rates changed every year from 1 January. The need for annual adjustments is explained by the fact that most rates were and remain fixed, measured in soums by a certain physical quantity - liter, dal, kg, ton, cubic meter.

Starting from 2019, excise tax rates have begun to change already twice a year - from 1 January and from 1 October.

According to the aforementioned law, rates effective at the end of 2019 from 1 January 2020 remain unchanged. At the same time, for certain types of excisable goods, they are indexed from 1 April and 1 October.

From 1 April and 1 October 2020, excise tax rates for the following products will be indexed:

ethyl alcohol - an increase in the rate in 2020 to 2019 by 15.7%;

fortified wines (with the addition of alcohol) - by 15.8%;

cognac - the rate grew by 14.1%;

vodka and other alcoholic beverages - an increase in the rate of 18.7%;

cigarettes and cigarettes - an increase of the rate by 15.5%.

By 1 October 2020, rates for cognac and vodka will be equal in size. This will stimulate the production of cognac as a more "noble" drink.

From 1 April  2020, excise tax rates on the following products will be indexed:

- natural wines of natural fermentation (without adding ethyl alcohol) - by 7.8% (a relatively low level of indexation of natural wine compared to fortified wine is associated with the need to stimulate the production of better and noble wines);

- beer - by 10.4%.

- gasoline, diesel fuel, liquefied gas sold by end consumers - by 22.8%, compressed gas - by 14.9%. At the same time, final consumers are legal entities and individuals who purchase gasoline, diesel fuel and gas for their own needs.

In 2020, excise tax rates will remain unchanged at:

- jewelry (25% rate), mobile services (20%), silver cutlery (11%), natural gas (20%), liquefied gas (30%), polyethylene granules (30%). Rates do not change, since they are set in an ad valorem form - as a percentage of the cost of goods (services);

- petroleum products sold by manufacturers.