TAX SYSTEM OF THE REPUBLIC OF UZBEKISTAN: GENERAL DESCRIPTION

Аннотация

This in the article Detailed information is provided about the tax system of the Republic of Uzbekistan . The legal framework of the tax system, existing types of taxes, recent reforms and measures taken to reduce the tax burden are covered. Changes aimed at improving tax policy and improving the investment climate are also analyzed . The article is intended for entrepreneurs, economists and specialists working in thefield oftaxationuseful to be possible. Key words:tax ,tax system ,tax burden ,tax legislation ,taxrevenue ,statebudget Uzbekistan Republic to independence from what has been achieved after his/her own independent tax system formed . State budget main income from sources one was taxes economic stability provide and social programs in financing important role plays . Uzbekistan tax system market economy under the circumstances entrepreneurship activity support , state theirincomeincrease andinvestment attractiveness provide forthepurpose shaped . Historical development of the tax system The tax system in the Republic of Uzbekistan was formed after independence and went through various stages:  1991-1997 – The period of formation of the tax system. During this period, the initial tax legislation was developed and taxpolicy was determined as anindependent state.  1998-2005 - The stage of tax legislation reform. Tax types were regulated and incentives forentrepreneurship were introduced.  2006-2017 –Stage ofreducing thetax burden and simplifying tax administration.  2018 to the present - The era of tax reforms. The tax system is being modernized and brought intolinewith international standards. Legal basis of the tax system. The tax system of the Republic of Uzbekistan is based on thefollowing legal documents: 1. The Constitution of the Republic of Uzbekistan - it sets out the basic principles of determining and collecting state taxes andfees. 2. The Tax Code is the main regulatory document regulating the general rules of taxation, types of taxes, rights and obligations of taxpayers , tax benefits, and other important issues. 3. Presidential decrees and resolutions are documents aimed at improving tax policy and providingtax breaks tocertain sectors . 4. Cabinet of Ministers resolutions are regulatory documents that establish additional procedures related to thetax system . 5. Regulatory and legal documents and recommendations adopted by the State Tax Committee. The role of tax revenues in the budget. In the Republic of Uzbekistan, taxes are the main source ofrevenue for thestatebudget.Taxes income as follows distributed:  State budget – basic expenses financing ( education , health) conservation , social programs ,defense and statemanagement ). page290 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue03,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai  Local budgets – regional development , local infrastructure and social projects done increase​  Pensionandsocial supplyfunds –pensions ,social protection programs financing . The share of tax revenues in the state budget varies from year to year. For example, in recent years, tax revenues have accounted for 70-80% of the state budget . This is an important factor for the financial stability of the state. The increase in tax revenues depends on economic growth, which is ensured by effective tax administration and the development of entrepreneurship. The black economy and the tax system. The black economy is a set of economic processes that operate outside of state control. The black economy in Uzbekistan can arise due to thefollowing factors:  Informal labor market - a large proportion of workers operate without being officially registered.  The advantage of cash circulation is that cash circulating outside the banking system allows fortaxavoidance.  High tax burden – some entrepreneurs move into the underground economy due to the heavy tax burden. The black economy seriously damages tax revenues and reduces state budget revenues. Thefollowing measures are being implemented to address thisproblem:  Reducingtax rates - creating favorableconditions for conducting formal business.  Development of the digital economy - mandatory introduction of electronic invoices andcash registers.  Taxpayerincentives –providing relief forbusinesses that comply with tax discipline.  Strengtheninginspection and control -identifying entrepreneurs operating illegally. Tax reforms implemented in recent years have reduced the share of the black economy. However, to achieve more effective results, it is necessary to continue measures to improve tax administration,support entrepreneurship, and attract the populationto theformal economy. Future directions of tax policy development. There are the following plans to improve the tax system in Uzbekistan:  Tax codex further Simplify .  Expand tax breaks for smallbusinesses.  Increasing entrepreneurial activity byreduci