Tax system and administration in Uzbekistan

Direct and indirect tax burden

Contributions to designated state funds comprise the significant share in the state budget. Government estimates for the last three year indicate this share to be approximately in the range of 40-45%of the state budget.

There are three major obligatory contributions levied on the taxpayer – contributions to Road Fund, Pension Fund and Non-budget Fund on Reconstruction, Capital Repair and Equipment of Educational and Medical Institutions.

These charges normally represent a considerable tax burden, as the underlying taxable base for all three contributions is the taxpayer’s net revenue (revenue net of VAT and excise tax). The cumulative rate of the above three contributions is 3.5% in 2016 (Pension Fund- 1.6%, Educational Institutions Fund- 0.5%,Road Fund- 1.4%).

Indirect tax group is another major contributor to the state budget. The share of indirect tax contributions has not changed significantly over the past two years. This group includes the following indirect taxes:

Indirect Taxes