National budget revenues in the first quarter of 2012 exceeded 4.5 trillion soums (official exchange rate 1USD=1985,13 UZS). The reduction in tax burden by 1.7% of GDP over the same period last year increased the budget revenues by 26.2% for the same period.

Uzbekistan Ministry of Finance informed that the main factors that increased the state budget revenues while reducing the tax burden was expansion of the tax base and increased tax collection rates.

In general, today the Tax Committee is working consistently on reducing the tax burden on businesses. So, if in 2000 the tax burden on business entities amounted to 27.9% of GDP, by 2012 it decreased by 6.5% and accounted for 21.4% of the GDP, which is one of the lowest rates in the world.

In the first quarter of this year, collection of taxes against the same period last year increased by 3.1%. By reducing the rates of single tax for small businesses in the industry from 6 to 5%, the revenue from this tax increased this year by 28.1% over the same period last year. In turn, the two-fold reduction in the fixed tax rate for individual entrepreneurs working in the services sector has led not only to increase in the number of the employed population, but also ensured growth in earnings from this source of income by 36.2%. In addition, lower tax rates (-1%) on personal income had a positive impact on the growth of real incomes.

Experts say the every measure taken to reduce the tax burden have created an effective system of tax incentives for continuous improvement, technical and technological re-equipment, as well as for companies involved in localization program. In the first quarter of this year, the amount of funds remaining at the disposal of enterprises thanks to newly granted tax benefits, exceeded 600 billion soums, or 3.4% of GDP.

In the first three months of the year the share of social expenditures accounted for 58.7% of the National Budget against 57.8% in the same period in 2011. National Budget was executed with a surplus of 0.2% of GDP. (Source: “Uzbekistan Today” newspaper)