Uzbek Institute Clarifies Deposit Interest Tax Proposal
Tashkent, Uzbekistan (UzDaily.uz) — The Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration and Fiscal Analysis under Uzbekistan's Ministry of Economy and Finance has clarified that a proposal to potentially tax interest income from bank deposits is solely the result of an academic study and does not constitute an official legislative initiative.
The institute said the research was presented during the "Fiscal Dialogue" event for professional discussion among experts and specialists. It stressed that the study does not have the status of a regulatory document, draft law or official government decision.
The institute noted that the proposal does not envisage any amendments to current legislation. Changes to the Tax Code can only be adopted through the established legislative process after consideration by the relevant government bodies with the participation of the expert community and the public.
Under current legislation, interest income and prize winnings from bank deposits received by individuals remain exempt from income tax.
According to the institute, the research is based on an analysis of international practice and is intended to examine possible mechanisms for ensuring a fairer distribution of income and a more balanced tax system. The authors of the study said it considered only the possible taxation of interest income on deposits, not the principal amount of deposits. The proposed tax rate was discussed at a level comparable to the taxation of dividend income.
The institute stressed that such studies are conducted to assess different tax policy scenarios, along with their potential benefits and risks, and do not represent ready-made proposals for implementation.
In conclusion, the institute said academic research is intended to encourage open professional discussion and the exchange of views, and that all proposals should be regarded solely as subjects for expert debate. It added that it would continue conducting research based on the principles of openness, objectivity and consideration of the interests of citizens.
