Uzbekistan Proposes Shift to Progressive Income Tax

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 transitioning to a progressive personal income tax scale in the medium term. The initiative was presented on 30 July 2026 during a fiscal dialogue.

At the same time, the institute proposes maintaining current base tax rates without changes.

According to the presentation, the corporate income tax rate should remain at 15 percent, the personal income tax rate at 12 percent, and value-added tax at 12 percent.

An institute representative noted that a flat personal income tax rate has been in place since 2019.

Given rising public incomes and economic changes, transitioning to progressive taxation in the medium term would align with the principle of tax fairness, according to the representative.

The institute also proposed indexing all fixed-amount tax rates annually to match projected inflation. The initiative's authors estimate such indexation could amount to about 5–6 percent per year.

Another recommendation was to publish fixed tax rates for three-year periods at once. According to the institute, this would allow businesses to plan pricing, contracts, and production volumes more effectively while reducing regulatory uncertainty.

The presentation notes that the proposed measures are initiatives of the institute. The Tax Committee previously stated that shifting to a progressive personal income tax scale is not currently among its plans.

In June 2025, the International Monetary Fund also recommended that Uzbekistan consider introducing a progressive personal income tax scale.