A proposal has been put forward in Uzbekistan to introduce an excise tax on imported palm oil. This initiative was presented by the Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis under the Ministry of Economy and Finance. The proposal was voiced on July 30 during a fiscal dialogue.
The Institute suggests setting a specific excise rate of 139 US dollars per ton, equivalent to approximately 1.7 million soums. The initiative's authors calculated that this rate would account for about 10% of the average cost of importing palm oil in 2026, which is estimated at 1388 US dollars or 16.93 million soums per ton.
According to calculations, with an annual import volume of 12.8 thousand tons, the introduction of the new excise tax could supplement the state budget with approximately 21.7 billion soums in additional revenue.
The developers justify this initiative by stating that the market price of palm oil does not reflect the social costs associated with its consumption, including healthcare expenses. The presentation notes that in economic theory, such taxes are considered a tool for accounting for negative externalities.
The authors also believe that consumers are not always aware of the potential risks associated with consuming products high in saturated fats. Since palm oil is often used in processed food ingredients, the institute believes that labeling is insufficient, and pricing mechanisms can serve as an additional means of regulating consumption.
The presentation cites recommendations from the World Health Organization, outlined in its 2016 report 'Fiscal Policy for Diet and Prevention of Noncommunicable Diseases,' according to which taxing foods high in saturated fats can be considered a measure to prevent noncommunicable diseases. Furthermore, the authors refer to the World Bank's position that such excises can simultaneously influence consumption patterns and provide additional budgetary revenues.
The Institute also points out that current tax benefits and zero rates create a price advantage for certain types of fats compared to alternative products. The developers believe that introducing an excise tax will help partially eliminate this imbalance. The materials from the event where the proposal was presented for discussion within the framework of the fiscal dialogue did not contain information regarding a decision on its implementation.
The Cabinet of Ministers of Uzbekistan has approved changes to the procedure for returning a portion of the value-added tax (Tax Free) to foreign citizens for goods purchased in the country. The relevant resolution dated July 16, 2026, was published on the legal portal Lex.uz.
The amendments provide for a relaxation of requirements for receiving VAT refunds. Specifically, the minimum total purchase amount required to apply for Tax Free has been reduced from 1 million to 300,000 soums.
Furthermore, the list of goods subject to the VAT refund system has been significantly expanded. Almost all categories of goods are now eligible for the cashback system, with the exception of meat and meat by-products, fish and seafood, animal products, vegetables, fruits, nuts, coffee, tea, spices, cereals, flour, and baked goods, animal and vegetable fats, meat, fish, and other aquatic invertebrates products, sugar and confectionery made from sugar, cocoa, processed vegetable, fruit, nut, and other plant products, as well as other food products.
The fund transfer procedure has also been changed. VAT refunds will now be credited to the foreign citizen's bank card or account within three working days. Previously, payments were made through the general mechanism of the tax cashback system—after the 25th day of the month following the month of refund registration.
The new rules also introduce the possibility of receiving the refund in cash in US dollars upon leaving Uzbekistan. In this case, the foreign citizen will be paid 85% of the tax amount, and the remaining 15% will constitute the operator's commission for the Soliq Servis system. Cash payments are made on the day of the foreigner's confirmed departure from the country, and the system operator maintains separate records of persons entitled to this method of receipt.
The reform of the Tax Free system was initiated by a decree of the President of Uzbekistan, signed in March of this year. This document provides for reducing VAT refund periods and introducing a mechanism for receiving cash payments.
