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ИД «Финансы и кредит»






National Interests: Priorities and Security

Improving the tax system of Uzbekistan

Vol. 17, Iss. 7, JULY 2021

Received: 1 April 2021

Received in revised form: 17 April 2021

Accepted: 4 May 2021

Available online: 15 July 2021

Subject Heading: Foreign experience

JEL Classification: E62, E63, H21, H87

Pages: 1392–1408


Elena Yu. SIDOROVA Financial University under Government of Russian Federation, Moscow, Russian Federation


Anvar V. DZHURAEV Financial University under Government of Russian Federation, Moscow, Russian Federation


Subject. The article spotlights directions of the tax system and fiscal policy, which induce the economic growth in Uzbekistan, sustainability of its tax system, and address key goals of the socio-economic development.
Objectives. We evaluate the current reforms intended to improve the tax system of Uzbekistan during the globalization of the world economy, and formulate relevant recommendations.
Methods. The study uses analytical methods to process publicly available data.
Results. The tax practice of Uzbekistan is found to demonstrate a disparity in tax burden in case of the general and simplified tax treatment, i.e. a comparatively big gap between taxes paid by taxpayers. To reduce the disparity, it is necessary to dramatically alleviate the tax burden and facilitate general taxation rules. Furthermore, to create the equitable and fair tax system, tax benefits should be gradually abolished, since they seriously reduce the income of people. A reduction in the VAT rate may help change the simplified tax treatment into the general one.
Conclusions and Relevance. If the proposed actions are implemented, Uzbekistan will be able to establish a modern taxation model, eliminate the systemic disparity and inequality, and, ultimately, create effective social institutions driving the sustainable economic growth. There should be the fiscal mechanism for net profit or income, value added, with the concurrent abolishment of the turnover tax, which contradicts international tax practices.

Keywords: tax system, tax reform, income tax, income tax, value added tax, tax deduction, turnover tax


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ISSN 2311-875X (Online)
ISSN 2073-2872 (Print)

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Vol. 17, Iss. 7
July 2021