Uzbekistan’s President Shavkat Mirziyoyev has urged the country’s tax authorities to not deceive entrepreneurs.

“The tax authorities must change their worldview. They need to consider business not from the point of view of collecting money, but as a source of expanding the tax base through support," Mirziyoyev said, as he addressed a meeting on business support and expanding the tax base on August 2.

Tax revenues in 1H23 amounted to UZS 76.3 trillion ($6.5bn), up 7.5% y/y. However, according to Mirziyoyev, this was significantly less than what the economy could provide at the current pace of development.

Many tax officials squeeze additional funds from entrepreneurs who regularly pay taxes instead of working on finding new sources of tax revenue,  Mirziyoyev noted. In 2022 alone, businesses overpaid the taxman by UZS 4.4 trillion.

The president also noted increased corruption in the tax sphere. The Prosecutor's Office has been instructed to pursue systematic work aimed at preventing the collection of excessive payments and reducing the number of tax inspection violations.

Mirzityoyev also criticised the tax service for outdated working methods and a drop in tax collection. The number of enterprises paying income tax in Uzbekistan was down by 9%; in Karakalpakstan and Khorezm the decline was 20%; and in Tashkent region, the drop was 12%.

For confirmed tax service violations, Mirziyoyev has ordered the dismissal of the tax department heads of 26 districts and cities. The heads of the Andijan and Syrdarya regional administrations also lost their posts.