Tax Payment System Simplified for Entrepreneurs in Uzbekistan

Another historic and extremely important step has been taken in our country to support small and medium-sized businesses and create broad opportunities for their free operation. According to a new decree signed by our esteemed President, the turnover threshold for the mandatory transition to value-added tax (VAT) payment for business entities from 1 billion UZS to 5 billion UZS has been increased.

Saida Mirziyoyeva, Assistant to the President, expressed her views on this welcome news and the true purpose of the reform.

Artificial barriers and forced fragmentation will end

In her statement, Saida Mirziyoyeva addressed one of the most painful issues entrepreneurs previously faced. She noted that due to the low threshold of 1 billion UZS set in the previous system, many entrepreneurs were forced to artificially split their businesses into several small parts to avoid excessive tax burdens.

"Thanks to the new decree, businesses will no longer be forced to artificially fragment and divide their operations," the Presidential Assistant noted with concern.

Who benefits from the reform?

This new regulation and economic relief primarily instills a strong desire for development in representatives of the following sectors that work directly with the population:

• Family businesses and shops: Small retail outlets in neighborhoods will operate without excessive bureaucracy and tax concerns.

• Catering establishments: Cafes and restaurants will have the opportunity to expand their turnover.

• Service sector: Providers and service centers offering various services to the population will develop.

New impetus for the economy

The fivefold increase in the threshold to 5 billion UZS allows thousands of honest entrepreneurs in our country to continue developing peacefully without being forced to change their tax regime. According to experts, this step will undoubtedly reduce the share of the shadow economy and provide a very strong and positive boost to Uzbekistan's overall economic growth rates in the near future.

Stay tuned to Zamin for the latest updates on our country's economy, business conveniences, and important legislative changes!