Uzbekistan VAT, Excise Tax and Import Surcharges

Domestic taxes on imports include VAT and excise taxes. According to the tax code, a 20 percent VAT is charged on imports, though there are some exceptions. Excise tax rates on products imported and exported from Uzbekistan are established by resolution No. 567 of the Cabinet of Ministers of December 25, 2003. In Uzbekistan, excise taxes are levied on a wide range of imported consumer products that are not domestically produced. These include ice cream (subject to a 200 percent excise tax), mineral water (100 percent), most types of juices (70 percent), poultry (70 percent), cheese (50 percent), yogurt (50 percent), plastic tableware and kitchenware (50 percent), and soap (20 percent). The Asian Development Bank notes that, in what appears to be inconsistent policy, Uzbekistan tries to lower the domestic price for poultry by prohibiting exports and simultaneously attempts to raise the domestic price by levying a 50 percent excise tax on imports. There are more than 50 goods/product groups on which excise tax is levied. The excise tax rates on certain goods produced in Uzbekistan were changed and new taxable items were introduced in 2004. New rates and import customs duties were established by resolution #ÏÏ-26 of the Cabinet of Ministers of March 11, 2005 and resolution #ÏÏ-183 of the president of the Republic of Uzbekistan of September 19, 2005. The resolutions also establish new import customs duties for certain types of goods. VAT of 20 percent and excise duties of up to 90 percent, both calculated from the tariff inclusive cost (the cost of the goods plus import tariffs), are also levied on certain goods.

Uzbekistan's trade policy also includes the use of tariff-like instruments, such as various types of import surcharges. The two most important are the surcharges placed on all imports by individuals and the surcharges placed on imports coming from third party countries through neighboring countries that do not have certificates of origin. For example, nonfood products imported into Uzbekistan for commercial purposes from neighboring countries but without a certificate of origin are subject to a 20 percent surcharge.