Ways to Reduce Tax Burden for Small and Medium-Sized Businesses: International Experience and Uzbekistan
Keywords:
tax burden, small and medium-sized enterprises, SME tax relief, simplified tax regime, Uzbekistan, tax reform, formalization, fiscal policy, entrepreneurship, shadow economyAbstract
This study investigates the principal mechanisms and international best practices for reducing the tax burden on small and medium-sized enterprises (SMEs), with particular emphasis on the fiscal policy experience of Uzbekistan during 2018–2024. Employing a comparative policy analysis framework supplemented by regression-based estimation, the research quantifies the impact of targeted tax relief measures on SME formalization, revenue growth and employment generation. The findings indicate that the transition to a differentiated SME tax schedule — combined with reductions in the unified tax rate, broadened threshold eligibility and digitized compliance procedures — is associated with a 34% increase in registered SMEs, an estimated contribution of 0.38 percentage points to GDP growth per annum, and a measurable decline in informal employment. Drawing on comparative evidence from the EU, Georgia, Kazakhstan and Singapore, the paper identifies a taxonomy of seven core tax-burden-reduction instruments and evaluates their applicability to transition economies.
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Copyright (c) 2026 Axrorov Abbos Aslamjon ugli, Ruzmetov Umrbek Ravshanbek ugli, Yodgorov Otajon Axnazarovich
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