Uzbekistan Proposes 2026 Tax Policy to Support Health, Entrepreneurship and Business Growth

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan’s Ministry of Economy and Finance has released the draft state budget for 2026, outlining the country’s medium-term tax policy. The plan aims to maintain key tax rates, encourage healthy lifestyles, support environmental protection, and create equal conditions for businesses.

Medium-term tax priorities focus on improving tax administration, maintaining a competitive business environment, promoting public health, protecting natural resources, and ensuring a stable revenue base.

The draft budget keeps major tax rates unchanged to foster a favorable entrepreneurial climate. For 2026, the corporate income tax rate is set at 15%, value-added tax at 12%, personal income tax at 12%, and social tax at 12% (25% for budget-funded organizations). The base turnover tax is 4%, and corporate property tax is 1.5%. Agricultural land remains taxed at 0.95% of its normative value.

The policy also emphasizes promoting healthy lifestyles and sustainable resource use. To align with World Customs Organization recommendations, excise taxes on locally produced alcohol will rise to 48,000 soums per liter from 1 February 2026, while imported alcohol will be taxed at 60,000 soums. From July 1, 2026, these rates will be unified at 48,000 soums per liter.

Differentiated excise rates on local and imported wine and beer will also be unified from July 2026: natural wine at 10,000 soums per liter, other wines at 12,000 soums, and beer at 4,000 soums. Excise on consumer and technical ethyl alcohol will remain at 15,000 soums per liter, with the possibility of reducing certain fractions to 5,000 soums.

New uniform tax rates will apply from 1 February 2026, to all tobacco products, including cigarettes, hookah, shredded tobacco, heated tobacco sticks, and vapes. Sugary drinks and energy drinks will be taxed on a progressive scale based on sugar content.

From April 1, 2026, excise on petroleum products will increase by 7%, and a new excise of 15,000 soums per kilogram will be imposed on packaged potato chips.

Other taxes will be indexed by 7% from 1 January 2026, including land tax, property tax, water use tax, and fixed subsoil use fees.

The budget also introduces measures to create equal conditions for entrepreneurs. Individual entrepreneurs and self-employed persons with annual turnover under 1 billion soums will pay a 1% turnover tax. Fixed personal income tax for individual entrepreneurs will be abolished, as will turnover tax exemptions for self-employed individuals earning under 100 million soums.

New taxpayers transitioning to VAT and corporate income tax will receive a one-year income tax exemption, and accounting costs for six months may be reimbursed up to 3.5 times the minimum wage. The threshold for monthly advance corporate income tax payments rises from 10 billion to 20 billion soums. Accelerated depreciation over three years, reduced corporate income tax on dividends paid to nonresidents, and property and land tax incentives for businesses meeting targeted goals are also included.

For e-commerce participants, new corporate income and turnover tax rates will apply, VAT will be zero-rated on the sale of self-produced agricultural products, and certain sectors, including greenhouses and gypsum processing, will benefit from special tax regimes.

From January 1, 2026, tax administration will simplify filing, introduce a single penalty for missing reports, allow installment payments of fines over six months, and compensate VAT on marketplace exports.

Local councils will gain expanded authority over regional taxes. From January 2026, the Supreme Council of Karakalpakstan, regional councils, and the Tashkent city council can apply reduction and increase coefficients from 0.5 to 1.2 to agricultural land taxes, and coefficients from 0.5 to 3.0 for non-agricultural land. They may also adjust water use tax rates from 0.7 to 1.5 and raise subsoil use tax rates up to 1.3, excluding limestone used for non-metallic building materials and cement.