Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev issued a decree titled "On measures to create a new system for ensuring high economic growth and employment in regions, as well as enhancing the role and responsibility of local government bodies in this regard."

The document outlines a system aimed at strengthening the accountability and responsibility of local authorities, as well as encouraging their initiative in carrying out reforms and implementing changes.

Target indicators for economic growth, unemployment reduction, and poverty alleviation have been set for 2025 for both the country and its regions.

Local authorities are granted expanded financial powers:

From 1 January 2025, sales taxes, property and land taxes from legal entities, income from renting state property, and at least 50% of personal income tax revenues will be fully allocated to district and city budgets.

90% of the proceeds from the sale of shares or stakes owned by local governments will be evenly distributed between the republican budget of Karakalpakstan, regional budgets, the budget of Tashkent city, and the budget of the district (city) where the corresponding entity is located.

The decree also provides for several changes starting in 2025:

The Jokargy Kenes of Karakalpakstan, regional, and Tashkent city people’s councils of deputies will have the right to set fixed personal 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.

A higher coefficient of up to 2 times may be applied to minimum rental rates for property used for taxation, including zoning in Tashkent similar to land tax.

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