New System For Regional Economic Development

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New System For Regional Economic Development

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WHEN:
DECEMBER 2024
STATUS:
WHERE:
WHEN:
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The President of Uzbekistan has signed Decree No. UP-223 dated December 20, 2024, which changes the system of tax distribution and strengthens the financial independence of regions.

Starting from January 1, 2025, the following taxes will be fully allocated to district and city budgets:

  • Turnover tax

  • Property tax from legal entities

  • Land tax from legal entities

  • Income from leasing state-owned assets

In addition, at least 50% of personal income tax will also remain in local budgets (excluding taxes from large taxpayers and regions with budget surpluses).

What will change for the regions?

Local authorities will now have the power to:

  • Set tax rates for individual entrepreneurs

  • Regulate rental fees for state-owned property

  • Adjust taxes on water resources and subsoil use

This reform will increase the financial independence of local governments, allowing them to allocate additional funds toward infrastructure, social projects, and business development. Regions will now be able to plan their budgets more effectively without relying on subsidies, which will enhance their economic resilience and create new opportunities for investment.