The Government of Uzbekistan is conducting gradual work on decreasing tax burden to the business entities. In 2000, tax burden to businesses made up 27.9% to GDP and the figure fell by 6.5 percentage points to 21.4% to GDP in 2011, which is one of the lowest figures in the world.

The main factors for increasing income part of the State Budget at decreasing tax burden are expanding taxable base and increasing tax collection. Tax collection increased by 3.1% year-on-year in the first quarter of 2012.

At the decrease of single tax payment rate for small businesses in industry sector from 6% to 5%, the tax collection grew by 28.1% year-on-year in the reporting period.

Cut of fixed tax for individual entrepreneurs in services sector by twice helped to increase number of employed and the growth of receipts on this tax by 36.22% year-on-year in the first quarter of 2012.

Besides, decrease of tax rate to income of individuals by 1 percentage point favourably impacted to the growth of real income of population.

The ministry said that annual measures on decreasing tax burden allowed to create effective tax stimulation system for modernization, technical and technologic re-equipment of existing capacities, as well as for enterprises, participating in localization programme.

In the first quarter, the enterprises saved over 600 billion soums or 3.4% to GDP in the result of new tax preferences.

Expenses of the State Budget of Uzbekistan was implemented in full volume at the size of 4.465 trillion soums in the first quarter of 2012 or increased by 26.6% year-on-year. Expenses of the State Budget for social sector made up 58.7% in January-March 2012 against 57.8% in the same period of 2011.

In the first quarter of 2012, the State Budget of Uzbekistan was implemented with 0.2% surplus to the GDP.

In the result of macroeconomic situation, sustainable execution of the state budget with surplus, positive trade and payment balance helped to form charter capital of the Fund for Reconstruction and Development of Uzbekistan (FRDU) at the size of US$10 billion. In near future, it is planned to increase its charter capital to US$15 billion.

The resources of the FRDU are one of main sources of financing of programmes on modernization and re-equipment of strategic industries of economy and infrastructure.