House member
02-17-2006, 01:44 PM
Of course, beer is alcoholic beverage many would argue. But not the Uzbek Tax agencies. Currently, beer products (Pivo mahsulotlari) are not subject to the excise tax, and
Vodka and wine distributors have to purchase from these two beverages from a special bank account. This account is under stringent government control. For instance, if you purchased vodka for a 10 mil soums you have to deposit some time later at least the same amount to this account. And if you do not, the tax and persecutor's SvVOJQK will have you.
This special account was introduced in summer of 2004 in a wake of fight against illigal money encashments. A encashment firm X would start this scheme a phony deal for supply of something from Y (as if X sold something to Y). It would receive non-cash money via payment order, say 10 mil soums. Then, the firm X purchases highly liquid goods for these 10 mil soums, such as vodka, and then sell them on market for cash. Whatever the cash amount received, some 9 mil would be handed to the firm Y. The difference would finance the Firm's X expenses (including unofficial payments to local authorities) and its profits. Later, the firm X would close operations just in time to avoid filing of tax returns. Because most of firms that did these schemes, were registered in one authority (say, Andijan) and conducted their business in another region (say, Horazm), they had a lot of time, before banks and Taxmen could find out about their activities.
Introduction of a special account put a tab on this scheme. Now if the firms X sells vodka on the market, it would have to deposit all of the amount into bank. Banks watch the balances on these special accounts on a daily basis, so unless it deposits the balance soon, taxmen and persecutors would crack down on it immediately.
By the end of 2004, Government became very effective in doing that, so the amount of black market in vodka, vine, tobacco, veg. oil decreased to insignificant levels.
The only way to fraud the scheme would be to open the firm on day one, open the account on day two, obtain licences on the third day, receive money on the fourth, purchase, vodka on the fifth, and then close the firm next week. This type of extra short schemes was also decreasing in size, as taxmen learn how to use electronic data transmission (basically, e-mail) to exchange data with banks. Before, they used ordinalry mail, and it would take them more than a week, to identify a fraud.
Now, despite all the crackdown on obnal (whether it is good for economy and nation at large or bad, is beyond this discussion), the beer remains unregulated.
There was an attempt to regulate beer in August 2004. The basis for this regulation was that a gov't demanded that all ALCOHOLIC beverages are sold and bought via special account. However, advocates of beer industry referred to a gov't decree on regulation of food-service industry, that declared beer a Weak-alcholic beverage. And because beer is a weak-alcoholic beverage, not an alcoholic beverage, it is okay to sell and buy it without necessarily depositing cash to banks. So beer industry managed to modify the government decree.
Now many questions arise, like if it is a fair deal for people. Like who benefits most from it (beer industry? then who controls beer industry?). If beer is non regulated, should vodka and wine be unregulated, too?
Because obnal was a very important source of income for many talented kids in wiloyats. Like the only source. Imagine a kid who studied math diligently in school, graduated from a finance or econ university, and then was left without a job. Even if he worked in tax , or bank, the salary was not enough to cover his living expenses. The crack on obnal, which is an absolutely legal operation all over the world, left him without significant earnings. However, beer distributors are still able to earn extra return on beer obnal.
Vodka and wine distributors have to purchase from these two beverages from a special bank account. This account is under stringent government control. For instance, if you purchased vodka for a 10 mil soums you have to deposit some time later at least the same amount to this account. And if you do not, the tax and persecutor's SvVOJQK will have you.
This special account was introduced in summer of 2004 in a wake of fight against illigal money encashments. A encashment firm X would start this scheme a phony deal for supply of something from Y (as if X sold something to Y). It would receive non-cash money via payment order, say 10 mil soums. Then, the firm X purchases highly liquid goods for these 10 mil soums, such as vodka, and then sell them on market for cash. Whatever the cash amount received, some 9 mil would be handed to the firm Y. The difference would finance the Firm's X expenses (including unofficial payments to local authorities) and its profits. Later, the firm X would close operations just in time to avoid filing of tax returns. Because most of firms that did these schemes, were registered in one authority (say, Andijan) and conducted their business in another region (say, Horazm), they had a lot of time, before banks and Taxmen could find out about their activities.
Introduction of a special account put a tab on this scheme. Now if the firms X sells vodka on the market, it would have to deposit all of the amount into bank. Banks watch the balances on these special accounts on a daily basis, so unless it deposits the balance soon, taxmen and persecutors would crack down on it immediately.
By the end of 2004, Government became very effective in doing that, so the amount of black market in vodka, vine, tobacco, veg. oil decreased to insignificant levels.
The only way to fraud the scheme would be to open the firm on day one, open the account on day two, obtain licences on the third day, receive money on the fourth, purchase, vodka on the fifth, and then close the firm next week. This type of extra short schemes was also decreasing in size, as taxmen learn how to use electronic data transmission (basically, e-mail) to exchange data with banks. Before, they used ordinalry mail, and it would take them more than a week, to identify a fraud.
Now, despite all the crackdown on obnal (whether it is good for economy and nation at large or bad, is beyond this discussion), the beer remains unregulated.
There was an attempt to regulate beer in August 2004. The basis for this regulation was that a gov't demanded that all ALCOHOLIC beverages are sold and bought via special account. However, advocates of beer industry referred to a gov't decree on regulation of food-service industry, that declared beer a Weak-alcholic beverage. And because beer is a weak-alcoholic beverage, not an alcoholic beverage, it is okay to sell and buy it without necessarily depositing cash to banks. So beer industry managed to modify the government decree.
Now many questions arise, like if it is a fair deal for people. Like who benefits most from it (beer industry? then who controls beer industry?). If beer is non regulated, should vodka and wine be unregulated, too?
Because obnal was a very important source of income for many talented kids in wiloyats. Like the only source. Imagine a kid who studied math diligently in school, graduated from a finance or econ university, and then was left without a job. Even if he worked in tax , or bank, the salary was not enough to cover his living expenses. The crack on obnal, which is an absolutely legal operation all over the world, left him without significant earnings. However, beer distributors are still able to earn extra return on beer obnal.