TAXATION SYSTEM OF UZBEKISTAN: INFLUENCE OF TAX REFORMS ON SMALL ENTERPRISES
Abstract
The problems of SME development and high tax rates have always been one of the most important social problems in any state. In recent years the taxation issue has gained a very big importance from the government policymakers. Politicians suggest further decrease of tax rates for small and medium enterprises and also improvement of single tax policy. This paper is dedicated to the analysis of influence of tax reforms on small enterprises in Uzbekistan.. Particularly it analysis how single tax effects the development and functioning of the SMEs. The base hypothesis used in this research paper is Laffer’ hypothesis, which states that decrease of tax rates will encourage the development of the enterprises and will raise more government revenues. This effect will be achieved through better business conditions, which ensures the financial sustainability of the business. Another point is the lower avoidance rate, where enterprises will not be more needed to hide their revenues and avoid taxes.The research results showed that implementation of lower tax rates and single tax policy, positively effect the development of the SME sector. Despite the policies and actions taken by government authorities, there is still space for improvements.
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