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Uzbek Senate has approved State Budget for 2014

13.12.2013 757

UzReport 13.12.2013

     December 12, 2013, the thirteenth plenary session of the Senate of Oliy Majlis opened in Tashkent. It was attended by members of the Cabinet of Ministers, heads of ministries and agencies, representatives of other organizations and the mass media.
     On the first day of the session, the senators examined 9 issues, of which 5 Laws, reports the press service of the Senate.
     In particular, the senators discussed and approved the State Budget for 2014. It was noted that in the context of global financial and economic crisis, the 2014 State Budget’s strategy is to ensure macroeconomic stability and high rates of GDP growth, formation of diversified and competitive economy, to further improve the welfare and living standards of households. The 2014 State Budget has been elaborated to meet the Concept of further extending democratic reforms and formation of civil society, as well as the implementation of the main priorities of social and economic development as defined by the President of Uzbekistan Islam Karimov at the Government meeting on January 18 this year.
     According to the senators, the main priorities of tax policy is to further reduce the tax burden on businesses and households, simplify the tax system, increase revenue and strengthening of the local budgets, strengthen tax administration measures aimed at suppression of under declaration and concealment of taxable objects.
     Among the most important measures to further reduce the tax burden, it is envisaged to reduce the basic tax rate on corporate income from 9 percent to 8 percent. As a result of legal entities will have additional 130 billion soums at their disposal; also, it is envisaged to reduce the tax on personal income from 8 percent to 7.5 percent in the minimum rate of income tax scale, while maintaining the transfer of funds in the amount 1 percent of personal income to individual pension accounts of citizens.
     During the discussion, the senators stressed that the main financial document preserves the increasing spending trend on social services and support of households, increasing funding for education, health, science, culture and sports, including funding for the construction, reconstruction, overhauling and equipping educational and laboratory buildings of universities, gyms and students residences. Through centralized investments the necessary funds will be channeled for the construction of industrial and social infrastructure, including construction of roads, water facilities and other social facilities for new residential areas in the countryside.
     In their reports senators emphasized that the main directions of tax and budget policy, as well as the 2014 State budget parameters are at large consistent with the priority areas of socio-economic development, strategic program of further extending reforms in all spheres of society. Particular attention was paid to measures aimed at maintaining sustained high economic growth rates, continuation of active investment policy in order to accelerate the development and modernization of industries, road transport and communications infrastructure, as well as further improving the business environment, supporting small business and entrepreneurship. After discussions, the senators have approved the State Budget of the Republic of Uzbekistan for 2014 and have adopted a relevant Resolution.
     Senators also considered the Law of the Republic of Uzbekistan "On Amendments to the Tax Code of the Republic of Uzbekistan in connection with the adoption of the main directions of tax and budget policy for 2014", prepared in accordance with the tax policy concept for 2014, in pursuance of some of the decisions of the President of Uzbekistan, and in order to clarify a series of legal norms for their uniform application.
     Senators noted that the Law is aimed at further reducing the tax burden on businesses and the economy in general, simplifying of the taxation system, the strengthening of the revenue part of local budgets and improving tax administration. The senators have approved the Law.


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