36Academic Research in Educational Sciences VOLUME 2 | ISSUE 10 | 2021
ISSN: 2181-1385
Scientific Journal Impact Factor (SJIF) 2021: 5.723 Directory Indexing of International Research Journals-CiteFactor 2020-21: 0.89
DOI: 10.24412/2181-1385-2021-10-1063-1068
CURRENT TAXES IN THE REPUBLIC OF UZBEKISTAN AND THEIR
DESCRIPTION
Mirkomil Hikmat ugli Rasulov
Independent researcher
ABSTRACT
This article describes the existing taxes in the Republic of Uzbekistan and examines the role of these taxes in the state budget. In addition, methods have been proposed that can be applied to the tax system of a country by studying the tax system of foreign developed countries.
Keywords: tax, tax code, indirect tax, direct tax, legal entity, individual entity, budget.
INTRODUCTION
In the economic literature, the tax system refers to the amount of taxes and other mandatory payments levied on legal entities and individuals. According to the Tax Code, taxes and other obligatory payments are in effect on the territory of the Republic of Uzbekistan and are introduced and canceled by the Oliy Majlis of the Republic of Uzbekistan.
MATERIALS AND METHODS
On the territory of the Republic of Uzbekistan, there are national taxes and other mandatory payments, as well as local taxes and other mandatory payments. State taxes and other mandatory payments include:
1) corporate income tax;
2) personal income tax;
3) value added tax;
4) excise tax;
5) taxes and special payments for subsoil users;
6) tax for the use of water resources.
National taxes are annually distributed between the respective local budgets in accordance with the norms established by a special decree of the President of the Republic of Uzbekistan on macroeconomic indicators and forecast of the state budget for the next financial year.
Academic Research in Educational Sciences VOLUME 2 | ISSUE 10 | 2021
ISSN: 2181-1385
Scientific Journal Impact Factor (SJIF) 2021: 5.723 Directory Indexing of International Research Journals-CiteFactor 2020-21: 0.89
DOI: 10.24412/2181-1385-2021-10-1063-1068
7) compulsory payments to social funds:
• unified social payment;
This payment is divided into the following funds: Pension Fund, Employment Fund and Trade Union Fund.
• insurance contributions of citizens to the off-budget Pension Fund;
• Mandatory payments to the off-budget Pension Fund.
8) Obligatory payments to the Road Fund of the Republic:
• Mandatory contributions to the Republican Road Fund;
• Taxes to the Republican Road Fund;
9) state duty;
10) customs payments;
State taxes paid according to the simplified taxation procedure:
11) single tax payment;
12) a fixed tax on certain types of economic activity. Local taxes and other mandatory payments include:
1) property tax;
2) land tax;
3) tax on the use of petrol, diesel fuel and gas in vehicles;
4) payment for the right to sell certain types of goods at retail and provide certain types of services;
5) single land tax (simplified tax)
Payers of local taxes and other mandatory payments are legal entities and individuals, regardless of the form of ownership in accordance with the tax legislation of the Republic of Uzbekistan. Property tax and land tax are introduced in accordance with the legislation of the Republic of Uzbekistan and are levied throughout its territory.The size of these taxes is determined by the decree of the President of the Republic of Uzbekistan.
The division of taxes into state (republican) and local taxes is based on the division of state bodies into the republican government and local government bodies. Each government agency should have its own budget, as well as taxes and other mandatory payments that it provides, based on the important functions that they perform. The government of the republic fulfills the main tasks at the national level, including health care, education, science, defense, security, organization of social protection and a number of other strategic tasks. Therefore, both the budget and taxes must be balanced. Value added tax, excise tax, corporate income tax, taxes and
Academic Research in Educational Sciences VOLUME 2 | ISSUE 10 | 2021
ISSN: 2181-1385
Scientific Journal Impact Factor (SJIF) 2021: 5.723 Directory Indexing of International Research Journals-CiteFactor 2020-21: 0.89
DOI: 10.24412/2181-1385-2021-10-1063-1068
special payments for subsoil users, tax for the use of water resources, taxes on personal income are transferred to the republican budget. An important feature of national taxes is that they can be deducted from taxes paid to the republican budget as a deduction for the administration of local budgets. If there is no distribution, a subsidy or subsidy is given. National and local taxes have a single essence, they are payments that must be paid to the budget. Local taxes are established in accordance with the functions performed by the government and are permanently and fully assigned to them. Since local governments are mostly close to citizens, they are responsible for social issues, including schooling, health, culture, education, and urban and rural development. But these taxes and other obligatory payments cover only 30-40 percent of their budgetary expenditures. Therefore, increasing the revenues of local budgets is one of the most pressing problems. An important feature of local taxes is that they fall only into the regional budget and are not transferred to other budgets.
DISCUSSION AND RESULTS
Due to the low level of taxes and other mandatory payments of local budgets, it is more difficult to stabilize (balance) the income and expenditures of these budgets. When solving this problem, deductions from the state fee are given. (for example, from value added tax, excise tax, etc.). Taxes operating in the tax system of Uzbekistan can be divided into several groups depending on their object and economic nature. Taxes are divided into four groups depending on the object of taxation:
1. Sales taxes
2. Income tax.
3. Taxes on the value of property.
4. Taxes depending on the area of the land.
Turnover taxes include value added tax, excise tax, customs duties and subsoil taxes. But the concept of turnover (turnover) is measured by the value of the goods shipped, and not by the sales turnover, as it used to be in accordance with our legislation. A single tax payment on gross income is also included in the value added tax.
Income tax includes corporate income tax, personal income tax and gross income tax of specialized wholesalers. This group of taxes also includes taxes on the improvement of the territory and the development of social infrastructure.
Academic Research in Educational Sciences VOLUME 2 | ISSUE 10 | 2021
ISSN: 2181-1385
Scientific Journal Impact Factor (SJIF) 2021: 5.723 Directory Indexing of International Research Journals-CiteFactor 2020-21: 0.89
DOI: 10.24412/2181-1385-2021-10-1063-1068
Property taxes include property tax. And land taxes can include a flat land tax for agricultural producers and land taxes for legal entities (non-agricultural) and individuals.
Depending on the economic nature, taxes are divided into direct and direct or direct and indirect taxes. The correct taxes are paid by the direct taxpayers themselves, that is, both the legal taxpayer and the actual taxpayer are one person. There will be no situation of imposing the correct tax burden on others. These taxes include all income taxes and property (resource) taxes. Reducing the tax rate because direct taxes are levied on direct income will leave businesses a significant portion of their income, allowing them to expand their investment activities and develop a market economy. If the rates of these taxes are increased, the financial capabilities of enterprises will decrease and ultimately will have a negative impact on the economic development of the country. Consequently, the tax rates included in this group are directly related to economic development.
Table 1 below shows the structure of direct taxes in the budgetary practice of the Republic of Uzbekistan and changes in it. Table 1
The role of direct taxes in the structure of state budget revenues of the Republic
of Uzbekistan (in percent)
Indicators 2016 year 2017 year 2018 year 2019 year 2020 year
Total income 100,0 100,0 100,0 100,0 100,0
1. Proper taxes 23,4 24,1 24,0 23,8 23,8
2. Indirect taxes 53,1 52,6 51,5 52,6 52,6
3. Resource fees and property tax. 13,6 13,2 12,9 13,8 13,8
4. Other income 9,9 10,1 11,6 9,8 9,8
Analysis of the presented data shows that during 2016-2020. The share of direct taxes in the total revenues of the state budget of the country tended to decrease. This is a negative situation in terms of trends in international budget practice. Because in accordance with these trends in a market economy, the share of direct taxes in the total revenues of the state budget should remain stable or tend to grow. Indirect taxes include value added tax, excise tax, customs duties, taxes on gasoline,
Academic Research in Educational Sciences VOLUME 2 | ISSUE 10 | 2021
ISSN: 2181-1385
Scientific Journal Impact Factor (SJIF) 2021: 5.723 Directory Indexing of International Research Journals-CiteFactor 2020-21: 0.89
DOI: 10.24412/2181-1385-2021-10-1063-1068
diesel and gas for vehicles. In 2016-2020, the share of indirect taxes in the total revenues of the state budget of the Republic of Uzbekistan tended to grow.
Table 2
The role of indirect taxes in the structure of state budget revenues of the
Republic of Uzbekistan (in percent)
Indicators Years
№ 2016 2017 2018 2019 2020 Changes in 2020 compared to 2016, in particular
1. State budget revenues - total 100 100 100 100 100 X
2. Including: -current taxes 53,1 52,6 51,5 52,6 51.2 +3,2
The presence of this trend is positive from the point of view of the current state of the state budget revenues. This is due to the fact that value added tax and excise tax are stable sources of income that are not directly related to changes in the economic situation and constitute the bulk of the income from indirect taxes. The tendency of the state budget of the Republic of Uzbekistan to increase social spending requires a constant increase in state budget revenues. To do this, it is necessary to ensure a high share of stable sources of income, such as value added tax, excise tax, in the structure of budget revenues. As mentioned above, direct and indirect taxes are interconnected, forming a single tax system.
CONCLUSION
In conclusion, based on real indicators in practice, we can say that in developed countries based on a market economy, tax regulation of business activities is effective. Therefore, it is necessary to pay special attention to tax incentives in Uzbekistan. Therefore, we would like to highlight several groups of tax benefits and emphasize that these groups can be applied in practice.
The first group of tax incentives includes accelerated depreciation of labor instruments, the use of which reduces the taxable profit of the enterprise. Accelerated
Academic Research in Educational Sciences VOLUME 2 | ISSUE 10 | 2021
ISSN: 2181-1385
Scientific Journal Impact Factor (SJIF) 2021: 5.723 Directory Indexing of International Research Journals-CiteFactor 2020-21: 0.89
DOI: 10.24412/2181-1385-2021-10-1063-1068
depreciation methods allow you to accumulate funds necessary to restore depreciable property in the first years of using the means of labor, as well as reduce income tax. In foreign countries, the intended use of depreciation is controlled, and the payment of wages, dividends, etc. From these funds is not allowed. Fast amortization is widely used in Sweden, France, Spain, Singapore, Hong Kong and other countries.
The second group of tax incentives is related to the deduction of capital expenditures from taxable income. Some countries use the practice of deducting investment costs in whole or in part (10-50 percent) from corporate income. It is also allowed to create investment reserves for the same purposes. Such tax incentives are valid in Austria, Germany, Italy, France and other countries. In addition, the United States has introduced a procedure for deducting research and development costs from taxable profit.
The third group of tax incentives is associated with the issuance of an investment tax credit. Investment tax credit is used in the practice of Sweden, Spain, Australia and other countries.
The fourth group of tax incentives is the benefits associated with the provision of tax holidays and a reduction in the tax rate. These benefits are often enjoyed by small businesses, newly formed corporations, and businesses in certain emerging industries and regions. Such benefits are used in countries such as Greece, Belgium, Luxembourg, Italy, Singapore.
REFERENCES
1. Tax Code of the Republic of Uzbekistan. https://lex.uz/docs/-4674902#-4675335
2. Reports of the Ministry of Finance of the Republic of Uzbekistan.
3. Bard V., Pavlova L. Taxes in the context of economic integration. //. -M .: "Knorus". 2004. p. 129.
