Significant Reduction in Uzbekistan Energy Company Tax Payments
The latest data from the Tax Committee reveals a significant decrease in tax payments by energy companies in Uzbekistan for the month of August. Uztransgaz, Uzbekneftegaz, and UzGasTrade collectively paid 2 times less tax compared to July, raising concerns among economists.
Economist Otabek Bakirov highlighted the sharp decline in tax revenues from energy companies, particularly noting the drastic decrease in payments by Uztransgaz, which is the largest taxpayer in the country. In August, Uztransgaz paid only 33.2 billion UZS in taxes, a significant drop from its previous contributions in July.
Similarly, UzGasTrade also reported a reduction in tax revenues by 2.1 times in August, while Uzbekneftegaz, which was among the top taxpayers earlier in the year, fell out of the top 5 list. Uzbekneftegaz saw a 1.62 times decrease in tax payments last month, with Hududgaztaminot also experiencing a decline of 2.1 billion UZS in tax revenues.
The combined tax revenues of these four energy companies plummeted from 1,144.8 billion UZS in July to 737.6 billion UZS in August, representing a staggering reduction of 407.2 billion UZS. To put this into perspective, the economist mentioned that this amount could have funded the construction of 21 schools with 660 seats each.
This decline in tax payments by energy companies follows a trend seen over the first seven months of the year, where large energy enterprises recorded significant reductions in tax contributions. Uzbekneftegaz saw a 24% decrease in tax revenues, while other companies like Bukhara Oil Plant, Thermal Electric Stations, Uz-Kor Gas Chemical, and the GTL plant reported drops ranging from 2 to 3.2 times.
The implications of these declining tax payments on the overall economy of Uzbekistan remain to be seen, as experts analyze the potential impact on government revenue and public services.
