The Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis at the Ministry of Economy and Finance of Uzbekistan has proposed introducing a unified tax system for individual entrepreneurs and self-employed individuals. This initiative was presented on July 30 during a fiscal dialogue.
The authors of the proposal noted that current legislation provides different approaches to paying social taxes. According to Article 408 of the Tax Code, individual entrepreneurs are obliged to pay a social tax monthly in the amount of at least one calculation unit. After increasing the calculation unit to 440,000 UZS starting September 1, the minimum annual payment will be 5.28 million UZS.
A different system applies to self-employed individuals. They can voluntarily pay a social tax equivalent to one calculation unit per year so that their employment period is recorded in the employment book. Monthly, this amounts to about 36,700 UZS, which, according to the institute, is approximately 12 times lower than the mandatory payment for individual entrepreneurs.
The Institute stated that international practice generally uses one category for the self-employed, with mandatory contributions calculated based on income or minimum wage, rather than through parallel systems with significantly different tax burdens.
Thus, the proposal calls for replacing the minimum social tax tied to the calculation unit with a payment based on the minimum wage. The contribution should be set at 12% of the minimum monthly wage, corresponding to the standard social tax rate established by Article 405 of the Tax Code.
Based on the current minimum monthly wage of 1.36 million UZS, the monthly payment would be 163,200 UZS, or about 1.96 million UZS per year. This is approximately 4.45 times higher than the current voluntary annual payment made by self-employed individuals to record their employment period in the employment book.
The authors of the proposal emphasized that changes should be implemented gradually. According to the proposed concept, the initial monthly payment could be set at around 50,000 UZS, after which it would gradually increase to the target level according to an approved schedule.
The Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis at the Ministry of Economy and Finance of Uzbekistan has put forward a proposal to reduce the corporate income tax rate for certain organizations from 20% to 15%, as well as to revise the system of taxing financial services. This proposal was presented during a fiscal dialogue on July 30th.
According to the information presented, the reduced corporate income tax rate should apply to banks, mobile operators, producers of polyethylene granules, markets, and shopping centers. Implementing this proposal will require amendments to Article 337 of the Tax Code.
The Institute calculated that lowering the tax rate would lead to a decrease in budget revenues by 859 billion soums. To cover this deficit, it was proposed to introduce Value Added Tax (VAT) on fee-based financial services.
The proposed model involves separating financial income into commission income and interest income. Under this proposal, fixed fees for financial services will be subject to VAT, while interest (margin) income will remain exempt from taxation.
VAT will be applied to services for which fixed payments are charged. Such services include account and bank card maintenance, cash settlement services, acquiring and payment acceptance, commissions on bank guarantees, sureties, and letters of credit, foreign currency commission services, processing of bank card transactions, depositary, registration, and stock exchange services, payment system fees, as well as the service component of factoring and forfaiting.
The proposal maintains the VAT exemption for services whose charges are not specified separately. These include deposit attraction, provision of loans and credits, interest on loans, repurchase agreement (repo) transactions, the interest portion of financial leasing, the discount portion of factoring and forfaiting, operations with stocks, shares, securities, and derivatives, as well as assignment of creditors' claims.
The presentation noted that the proposed approach aligns with international practice. Recommendations from the International Monetary Fund and the Organisation for Economic Co-operation and Development were cited as justification, stating that fee-based financial services are subject to VAT, while interest (margin) income remains exempt from such taxation.
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.
