By presidential decree, the threshold for switching to VAT has been raised to nearly 5 billion soums, linked to the base calculated value, and a simplified VAT form has been introduced for trade, services, and public catering. The Chamber of Commerce and Industry held a forum 'New Opportunities for Business,' gathering over 400 entrepreneurs.

The proposals included in the decree were put forward by the Chamber of Commerce and the Public Council for Entrepreneurship Support under the president. Council member and tax consultant Murod Muhammadjonov noted that raising the threshold from 1 billion to nearly 5 billion soums encourages businesses to operate 'in the white.'

'Businesses can work 'in the white' without fear because the threshold has been raised to 5 billion. This could lead to a fivefold increase in budget revenues. Entrepreneurs who previously limited their business can now expand up to 5 billion. Another step is the introduction of a simplified VAT mechanism at a 6% rate. Previously, an entrepreneur paying 4% had to switch to 12% after exceeding 1 billion. Now they can stay at 4% up to 5 billion, and after that, switch to 6% instead of 12%. This allows gradual expansion without a sharp increase in tax burden,' he said.

Muhammadjonov also highlighted the opportunity to legalize employee labor in the catering sector. 'In cafes and restaurants, an employee can come, work for a week, and leave. Previously, many could not conclude labor contracts with them. Now the simplified mechanism for concluding labor contracts will play a big role in regulating labor relations,' the expert stated.

At the forum, Business Ombudsman Abdumannop Buriev noted that entrepreneurs now seek help not so much for property rights protection as for business expansion. 'The difference between protecting entrepreneurs then and now is like heaven and earth. In 2015-2016, entrepreneurs mainly applied about property rights – 'they are demolishing a building, not paying compensation.' Or complained about illegal inspections. Now the main issues are business development, obtaining loans. This is a very good trend,' he said.

A Kun.uz correspondent spoke with several entrepreneurs. Lola Mirzaeva, head of the hotel 'Farovon Khiva': 'In the restaurant and hotel business, employees often change. Previously, there were problems with this. Now there are none. VAT opportunities have also become very good.' Khojiakbar Sobirov, head of the hotel 'Layner': 'We have about 200 employees. The innovations are very convenient for us. The reduction in VAT rate, simplification of its calculation, and the zero profit tax rate – all this will help us a lot.' Sarvar Bekchanov, an entrepreneur from Khorezm: 'For the hotel and catering sector, the 12% VAT rate created some inconvenience. We perceive these changes as a big strategic incentive. By easing the tax burden, it will be possible to direct the funds remaining at the disposal of the business to investments.'

Source: kun.uz