Tashkent, Uzbekistan (UzDaily.com) -- The Government of Uzbekistan cuts single tax payment rate from 8% to 7% in 2010, the resolution of the President “On forecasts of main macroeconomic indicators and parameters of the State Budget of the Republic of Uzbekistan in 2010” said.

The move will help to decrease tax burden, support and stimulate development of small and private businesses in Uzbekistan.

Single tax payment rate for trade and catering enterprises was kept. The Government also introduced an advanced payment on single tax payment at the level of 5% form the revenue sum, from each trade operations, for wholesale trade enterprises, except wholesale pharmaceutical organizations and specialized wholesale warehouses of the Association of Wholesale Trade Enterprises.

The government also kept rates of single tax payment to lottery organizers (33%) and notaries, carrying out private practice (50%).

The basic rate of income tax will be also cut from 10% to 9% in 2010. This will help local enterprises to save 52 billion soums, which they can direct to expand production, speed up modernization and re-equipment, as well as increase salaries of workers.

The income tax for commercial banks remains at 15% and legal entities, organizing entertainment events – 35%.

The resolution also envisages ordering activity, organizing concerts, and licenses will be issued only to executors – individuals and creative groups – legal entities.

The Government kept preference on income tax for legal entities, which export their products and services, including:

• Income tax cut by 30% if enterprise exports from 15% to 30% in total volume of realized goods or services;
• Income tax cut by 50% if enterprise exports from 30% or higher in total volume of realized goods or services.

The enterprises, rendering services, will get 10% discount to income tax if they accept payments via plastic cards.

Income tax for individuals will be cut from 12% to 11% from 1 January 2010 and 1% of tax will be directed to accumulated pension account of citizens.

Uzbekistan also kept value added tax at the level of 20%.

The resolution also envisages indexation of excide tax to:

• Beer, cigarettes with filters, alcohol products, spirit – by 25%;
• Cigarettes without filters – by 50%.

From 1 January, excise duties for vegetable oil and alcohol products will be fully directed to budget, earlier part of excise duties were directed to Uzmaslojirprom (Uzbek Oil and Fat Industry) and Uzvinpromholding (Uzbek Wine Industry Holding).