Uzbekistan has introduced a state support mechanism for the purchase of new electric vehicles through subsidized auto loans. The draft resolution of the Cabinet of Ministers has been published for public discussion.
Uzbekistan has introduced a state support mechanism for the purchase of new electric vehicles through subsidized auto loans. The draft resolution of the Cabinet of Ministers has been published for public discussion.
According to this proposal, state assistance will be available starting August 1, 2026, for the purchase of a new electric vehicle valued up to 1000 basic calculation units. The maximum amount of an auto loan eligible for a subsidy will be 300 million soums.
The government plans to compensate part of the interest rate during the first two years of the loan. The subsidy will apply to the portion of the interest rate exceeding 16% per annum, with compensation limited to 8 percentage points.
For example, if the annual interest rate on the auto loan is 24%, the government subsidizes 8 percentage points. If the rate is 20%, the subsidy will be 4 percentage points.
The program applies exclusively to new M1 category electric vehicles that run only on electricity and are not equipped with an internal combustion engine.
To qualify for the subsidy, borrowers must meet the requirements of the lending bank, have no overdue payments on the loan, and declare their intention to use the state program when applying.
Subsidy payments will be directed directly to the lending bank to partially cover the loan interest, rather than being paid to the borrower themselves.
The subsidy may be terminated if the borrower fails to make payments for three consecutive months, repays the loan early, terminates the loan agreement, or provides false information when applying for state support.
The proposal envisages financing the program in 2026 through additional allocations from the national budget. For the period from 2027 to 2030, the necessary funds will be included annually in the state budget based on the demand for this support measure.
Currently, the draft resolution is in the public discussion phase, and its provisions may be amended before final approval.
The Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis under the Ministry of Economy and Finance proposed beginning preparations for the introduction of a carbon tax for large industrial enterprises. This initiative was presented on July 30, 2026, during the 'Fiscal Dialogue' event.
According to the institute's presentation, the preparatory stage is scheduled for 2027. It will include inventorying emissions, determining the tax base, tax rates, and categories of payers. The introduction of the carbon tax itself is proposed to start in 2028, initially applying it to the sources with the highest emissions, with the possibility of later expanding coverage to other enterprises.
Two options are being considered for determining the tax base: the actual volume of carbon dioxide emissions or the volume of consumed carbon fuel. It is proposed that from 2029 to 2030, the tax rates will gradually increase according to a pre-announced schedule. Although the specific parameters of the tax have not yet been established, its fiscal impact is expected to begin in 2028.
The authors of this initiative believe that implementing a carbon tax will allow the cost of emissions to be accounted for in the production costs of enterprises, thereby stimulating companies to improve energy efficiency and reduce environmental pollution.
Another important argument in favor of this mechanism is the development of international carbon standards. According to the institute, creating an internal system for carbon pricing can reduce the risk of additional costs for Uzbek exporters related to carbon levies imposed in foreign markets. The institute emphasized that this initiative is analytical in nature and is not yet an adopted decision or draft law.
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.
