Uzbekistan Proposes Carbon Tax for Industry from 2028

Tashkent, Uzbekistan (UzDaily.uz) — The Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis under the Ministry of Economy and Finance has proposed beginning preparations to introduce a carbon tax for major industrial enterprises. The initiative was presented on 30 July 2026 during the "Fiscal Dialogue" event.

According to the institute's presentation, the preparatory phase is proposed to take place in 2027. It involves conducting an inventory of emissions and defining the tax base, tax rates, and the category of taxpayers. The introduction of the carbon tax is proposed to start in 2028, initially applying to the largest emission sources, with the potential for subsequent expansion to cover other enterprises.

Two options are under consideration for the tax base: the actual volume of carbon dioxide emissions or the volume of carbon fuel consumed. In 2029–2030, tax rates are proposed to increase incrementally according to a pre-announced schedule. Specific parameters of the tax have not yet been determined, though the fiscal impact is expected beginning in 2028.

The authors of the initiative believe that introducing a carbon tax will integrate the cost of emissions into enterprise production costs, encouraging companies to improve energy efficiency and reduce environmental pollution.

The development of international carbon regulations was cited as another key argument in favor of the mechanism. According to the institute, establishing an internal carbon pricing system could reduce the risk of additional expenses for Uzbek exporters arising from carbon levies imposed in foreign markets.

The institute emphasized that the initiative is analytical in nature and does not currently represent an adopted decision or a draft law.