The Agency for Waste Management and Circular Economy of Uzbekistan announced a significant adjustment to the draft legislative act concerning the old car disposal system.
The document was amended by removing the provision that required owners of vehicles aged 30 or older to pay an annual compensatory environmental fee. This decision was made following extensive public discussions and consideration of submitted proposals and feedback.
The most controversial point was the mandatory annual environmental fee of 30 basic calculation units, equivalent to 12.36 million soums; this clause has been excluded from the updated version of the draft law.
Instead of a compulsory payment system, a voluntary disposal system based on market principles is proposed. Under the new concept, enterprises responsible for independent valuation and recycling of old cars will be selected nationwide through open tenders.
Vehicles, including non-operational ones, will be valued based on market price. Inspections for vehicles that cannot move independently are planned to be conducted directly at their location.
After valuation, the owner can choose one of two compensation options: receiving cash or a special voucher. This voucher can be used as a down payment when purchasing a new car from an official dealer. It is proposed that the remaining cost of the car will be covered by interest-free installments over a period of two to seven years.
If the owner decides not to use the voucher, they can exchange it for cash within one month. A portion of the costs incurred by operators conducting vehicle valuation and disposal is planned to be covered by funds collected from the disposal fee.
The Agency presented an example of how the proposed mechanism would function. According to the Agency, if an old car, such as a GAZ-24, Moskvich, or first-generation Nexia, is valued at a minimum of 5 million soums, the owner can purchase a new Cobalt without a down payment, paying monthly interest-free installments of about 1.9 million soums over seven years. If the valuation reaches 70 million soums, the monthly payment will decrease to 1.13 million soums.
The Agency links the necessity of this reform to environmental factors. According to the Agency, out of five million registered vehicles in Uzbekistan, about 100,000 are non-operational and generate 63% of harmful urban emissions. Furthermore, the disposal of one vehicle produces up to 50 kilograms of hazardous solid waste.
The Agency emphasized that work on the draft law is ongoing and called on citizens to submit their suggestions and comments for further improvement of the document.
The legislative chamber of the Oliy Majlis of Uzbekistan adopted the draft law in its second and third readings, which introduces a special tax regime for foreign citizens. The goal of this legislative act is to stimulate the inflow of foreign capital and increase Uzbekistan's investment attractiveness.
According to the press service of the lower house of parliament, this law grants participants in the special tax regime an exemption from personal income tax on income derived from sources outside of Uzbekistan. Furthermore, the document provides for a reduction in the social tax rate from 12% to 6% until January 1, 2030, for employees participating in dual education programs at industrial enterprises. Project developers believe that this measure will help accelerate the training of highly qualified personnel for the national economy.
The first reading of the bill took place in June 2026. At this stage, it was established that to obtain the status of a tax resident under the special regime, a foreigner must open an account in an authorized commercial bank or create a wallet on an authorized domestic cryptocurrency exchange, as well as pay a specified special fee.
The framework for this special tax regime for foreigners was initially initiated by a decree signed by President Shavkat Mirziyoyev in October 2025. This decree allowed foreigners to claim exemption from taxes on income earned abroad, provided they met a specific set of criteria.
Specifically, the applicant must own or rent residential property in Uzbekistan and be physically present in the country for at least 30 calendar days during any consecutive 12-month period to be recognized as a tax resident under this regime. A special initial fee is set at $50,000 for the primary applicant. The regime can also be extended to close adult relatives upon payment of $10,000 for each family member.
In May 2026, the Cabinet of Ministers approved administrative rules regulating the application process. Applications are accepted through Public Service Centers, the Unified Portal of Interactive Public Services (my.gov.uz), or the Electronic Portal of Tax Services. After verification by the Tax Committee, applications are reviewed by a special commission within three working days.
Currently, the document has been sent to the Senate for consideration. After approval by parliament, the law must be signed by President Shavkat Mirziyoyev to officially come into force.
The legislative body, Oliy Majlis, approved in the first reading the draft law 'On the Ratification of the Charter of the Clean Energy Center of the Organization for Economic Cooperation (Ashgabat, November 27, 2021)'. After consideration, the document was sent to the Senate.
This bill was developed in accordance with the Law 'On International Treaties of the Republic of Uzbekistan' and provides for the ratification of the Charter of the Clean Energy Center, which is being established within the framework of the Organization for Economic Cooperation (OECO). The Charter was adopted in Ashgabat on November 27, 2021, and Uzbekistan signed this document in 2024.
As noted during the meeting, the ratification will be another step towards strengthening Uzbekistan's participation in regional energy cooperation, the development of renewable energy sources, increasing energy efficiency, and achieving green development goals.
Umid Yakubkhodjaev, a member of the Committee on Foreign Affairs, Defense, and Security, emphasized that in recent years, the country has consistently carried out reforms to modernize the energy sector, develop renewable energy, and implement energy-saving technologies. According to him, the ratification of the Charter will allow the green reforms being conducted in Uzbekistan to be linked with regional cooperation, scientific and technical exchange, and the implementation of joint projects.
The main task of the Clean Energy Center will be to promote the development of renewable energy and energy efficiency, as well as to strengthen the potential of relevant national institutions of OECO member countries. The creation of this center, as noted at the meeting, will improve coordination among the authorized bodies of the Organization for Economic Cooperation in the field of sustainable energy, expand opportunities for developing and implementing regional projects, and provide them with technical support.
Deputies stressed that this bill aligns with the national interests of Uzbekistan, the tasks of increasing economic competitiveness, and fulfilling the country's international climate obligations. In their opinion, the adoption of this law will contribute to expanding the republic's participation in the activities of OECO, developing scientific and technical cooperation in the field of clean energy, and forming a sustainable energy infrastructure in the region. After discussion, the deputies adopted the bill and sent it to the Senate for consideration.
