The Minister of Agriculture of Uzbekistan, Ibrohim Abdurakhmonov, approved a temporary procedure for providing subsidies to cotton and grain producers for the purchase of diesel fuel. This order was registered by the Ministry of Justice on July 29, 2026, and published on the Lex.uz portal.
The document provides for partial reimbursement of the cost of diesel fuel purchased through the commodity exchange. This measure applies to purchases made between April 1 and July 1, 2026, but applications for the subsidy can be submitted until January 1, 2027.
The subsidy covers the portion of the fuel price that exceeds 13 million soums per ton. The maximum payment amount for one recipient is set at 2 million soums.
Subsidy payments will be made proactively through the Agro Subsidy portal without the need to submit a separate application. To qualify for the subsidy, the fuel must be purchased exclusively through the Republican Commodity Exchange of Uzbekistan, the land plot must be registered on the Agroportal, and the use of the fuel must comply with the approved agrotechnological plan and occur between April and June.
The subsidy amount will be calculated automatically based on data from the Agroportal and the information system of the Republican Commodity Exchange of Uzbekistan. Funds are transferred to the recipient's bank account within three business days. These funds can primarily be used to repay outstanding preferential loans obtained for agricultural production.
If the Agency for Agricultural Payments cannot obtain the necessary information due to technical failures or interruptions in interdepartmental data exchange, farmers can submit an application independently in written or electronic form.
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.
