It was reported on 5 January 2023 that the 2023 budget allocations have kept the basic tax rate of profit tax at 15%. The personal income tax rate remains 12%, and the property tax rate continues at 1.5%. The levels of tax collection and government spending are based on the expected global prices of raw materials; changes in the tax policy; and improvements to tax administration.

There are however proposed changes in relation to unifying tax rates and improving the business environment. To improve the climate for entrepreneurs, the rates of turnover tax that currently range from 4% to 25% for 14 types of activity are to be unified and there will be a single tax rate of 4%.

For the purposes of obtaining benefits and incentives, enterprises with an annual turnover up to 1 billion soums will be categorised as micro enterprises, those with turnover up to 10 billion soums will be categorised as small enterprises and enterprises with turnover up to 100 billion soums will be considered as medium sized businesses. Reduced rates may be available based on the region and activities of the business.

Amounts have been allocated from the budget to enhance the efficiency of the tax and customs administration.

Excise tax changes

With effect from 1 February 2023, the excise tax rates on oil products and manufactured alcohol and tobacco products are to be indexed to 10%.

From 1 January 2023, the excise tax on the production of alcohol products (not including soft drinks) is to be calculated on the basis of the percentage of ethyl alcohol in the relevant product. The unit of measurement of the alcohol products is defined as the liter.

For 2023 the rate of excise duty on vodka, cognac and other alcohol products is set at 34,500 soums per liter of ethyl alcohol (excluding added water) in the excise goods. Also from 1 January 2023, the excise tax will be charged at a rate of 7,450 soums per 1 liter on rectified ethyl alcohol from food raw materials.

From 1 January 2023, the excise tax rates on the import of alcohol and tobacco products have been reduced by 5%.