The Business Ombudsman of Uzbekistan has proposed a review of the fine system under Article 227-1 of the Tax Code. Deputy Commissioner for the Protection of Entrepreneurs' Rights Jamshid Urunov, during a dialogue of the Interdepartmental Commission on WTO, described the current sanctions as critical for business survival.

Currently, Article 227-1 stipulates a fine ranging from 2% to 20% of the net revenue earned in the last quarter. Companies that commit violations in displaying fiscal marks, integrating with tax systems, or rules for digital labeling of goods are targeted. Such goods include alcohol, tobacco, beer, household appliances, medicines, and carbonated beverages.

The main issue is that the fine is tied to the total turnover of the entire network, not to a specific violation. Jamshid Urunov explained that if one of a brand's 50 stores fails to issue a receipt or sells goods with labeling violations, the penalty is applied to the quarterly revenue of all retail outlets. According to the business ombudsman's representative, such punishment leads the company to bankruptcy with 100% probability.

As an example, the company Coca-Cola Ichimligi Uzbekiston was cited. With a production speed of 15 bottles per second across five plants, a 20% fine on quarterly revenue due to one incorrect labeling code would become unbearable even for an industrial giant. Previously, this article applied only to importers and producers, but now it also affects retail trade.

Deputy Prime Minister Jamshid Khojayev acknowledged the size of the penalty as very large and instructed the Tax Committee to study the situation. In turn, representatives of tax authorities argue for maintaining strict measures, claiming that small fines will not effectively incentivize businesses to comply with established requirements.

Source: podrobno.uz