The Ministry of Economy and Finance of Uzbekistan has initiated a proposal to cease granting new social tax benefits to enterprises. Furthermore, it is suggested that existing support measures be completely abolished starting from 2030.
Department experts conducted an analysis and concluded that abolishing these benefits is necessary to form more fair and competitive market conditions. Currently, for a large number of companies, the social tax rate is reduced either to 1% or to 0% from the initial 12%. The Ministry believes that this practice creates an imbalance in pension insurance financing.
In 2025, benefits were provided to 65 thousand enterprises, amounting to 3.2 trillion soms. At the same time, businesses report a reduction in expenses, while pension obligations to employees remain unchanged.
The ministry's proposal is to introduce a unified social tax rate for all market participants. Instead of exemption from this tax, business support will be provided through subsidies allocated from the state budget. This will ensure equal conditions for employees with the same salary level regarding tax payments and ensuring pension rights, regardless of where they work.
Social taxes are directed to the Pension Fund. Currently, the fund's revenues are insufficient to cover all payment expenses, which requires additional funding from the state. According to the department, abolishing benefits can increase revenues to the fund and thus reduce the financial burden on the state budget.
Previously, raising the retirement age was discussed in Uzbekistan: for men, it was proposed to gradually increase it from the current 60 to 63 years, and for women—from 55 to 58 years. This project was also submitted by the Ministry of Economy and Finance for public discussion.
