World Bank experts presented recommendations on tax reform
Presentation on tax policy of representatives of the World Bank mission, arrived in Uzbekistan on June 18, 2018, was held at the Ministry of Finance of the Republic of Uzbekistan.
Presentation on tax policy of representatives of the World Bank mission, arrived in Uzbekistan on June 18, 2018, was held at the Ministry of Finance of the Republic of Uzbekistan.As reported by the Press Service of the Ministry of Finance, within the framework of the mission, the World Bank experts led by Alma Kanani, Practice Manager at the World Bank Group, presented their recommendations on further reforming the country’s tax system.
The participants of the mission noted the need to carry out reforms in interrelation with capabilities of tax authorities on their administration, and to conduct it consistently, which will allow all participants to ensure predictability of tax reform.
World Bank experts supported the abolition of mandatory contributions to state trust funds, which, in their opinion, contributes to increasing competitiveness of the economy and creating favorable conditions for business entities.
At the same time, experts consider it appropriate to keep the VAT rate and its spread to small business entities, as well as rejection of a number criterion that is currently used. To achieve a deficit-free budget, the mission considered the issue of a possible reduction of property tax while maintaining the VAT rate and an increase in the profit tax, as well as a detailed study of previously granted tax benefits for their effectiveness.
The World Bank Group expressed its willingness to provide technical assistance in carrying out reforms, including preparation of the Tax Code, and development of the institutional capacity of financial and tax authorities.