Uzbekistan is establishing a new system to ensure rapid economic growth across its regions.

The President of Uzbekistan, Shavkat Mirziyoyev, has issued a decree titled "On Measures to Establish a New System for Ensuring High Economic Growth Rates and Employment in the Regions, as well as Enhancing the Role and Responsibility of Local Self-Government Bodies in This Context."

https://uzdaily.uz/ru/v-uzbekistane-nalazhivaetsia-novaia-sistema-obespecheniia-vysokikh-tempov-ekonomicheskogo-rosta-v-regionakh/2024-12-24 08:47:26

In 2025, target indicators for economic growth, reduction of unemployment, and poverty alleviation have been established for the republic and its regions.

Local authorities are granted expanded financial powers:

- Starting January 1, 2025, sales taxes, property taxes, and land taxes from legal entities, revenues from the rental of state property, as well as no less than 50% of the income tax from individuals will be fully allocated to district and city budgets.

- 90% of the income from the sale of shares or stakes owned by local self-government bodies will be distributed equally among the republican budget of Karakalpakstan, regional budgets, the budget of Tashkent city, and the budget of the district (city) where the corresponding asset is located.

The decree also outlines a series of changes starting in 2025:

- The Jokargy Kenes of Karakalpakstan, regional councils, and the Tashkent city council of people's deputies will have the authority to set fixed income tax rates for individual entrepreneurs within the minimum and maximum values defined by legislation, taking into account the level of economic development of districts and cities.

- For minimum rental rates on real estate subject to taxation, an increasing coefficient of up to 2 times may be applied, including zoning in Tashkent, similar to the land tax.

- District and city councils of people's deputies will be able to set coefficients ranging from 0.7 to 1.5 for taxes on the use of water resources and apply an increasing coefficient of up to 1.3 for taxes on the extraction of construction materials from subsoil resources.