Portion of VAT and Tax Revenues to Be Allocated to Local Budgets in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev has signed a decree “On Additional Measures to Strengthen the Financial Sustainability of Local Budgets and Budgetary Organizations, and to Enhance Budgetary Discipline.”

Starting 1 January 2026, a portion of value-added tax (VAT) revenues will be allocated to local budgets: 5% to the budget of Tashkent city and 20% to the budgets of other regions.

The decree also establishes the distribution rules for revenues from VAT, corporate income tax, excise duties on the retail sale of gasoline, diesel fuel, and gas, state duties, fines, and fees.

District and city councils are granted the right to increase fixed rates of fees for the right to sell alcoholic beverages by up to 20%, with all revenues from these fees directed fully to the budgets of the respective territories.

Additional local budget sources will include proceeds from leasing agricultural land and taxes collected from agricultural and commodity markets, enabling improvements in infrastructure and development of local territories.

From 1 January 2026, district and city authorities will have the right to place surplus budget funds on deposits via auctions to generate additional income.

Simultaneously, deputy hokims (mayors) responsible for construction, communications, municipal services, ecology, and landscaping will also be considered heads of public improvement departments.

Starting 1 April 2026, city public improvement departments will be required to plant seasonal flowers and seedlings on assigned territories. This practice will be expanded to all regions of the country from 2027.