IMPROVING LABOR INCOME TAXATION IN UZBEKISTAN BY MINIMIZING LOOPHOLES

Аннотация

Labor income taxation plays a crucial role in financing public services and promoting economic equity. However, the effectiveness of such taxation systems can be undermined by loopholes that allow individuals and corporations to avoid paying their fair share. Uzbekistan, as a transitioning economy, has made significant strides in reforming its tax system. However, the persistence of loopholes in labor income taxation has led to revenue loss, income inequality, and inefficiencies in resource allocation. This paper analyzes the current state of labor income taxation in Uzbekistan, identifies key loopholes, and proposes strategies to minimize these loopholes to enhance tax compliance, improve revenue collection, and foster equitable economic development. Keywords: labor income taxation, tax loopholes, tax compliance, Uzbekistan, informal sector, tax evasion, fringe benefits, tax reform, tax administration, progressive tax system, employment formalization.