Tashkent, Uzbekistan (UzDaily.com) —  During the second plenary session of the Senate, the law "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of Key Directions of Tax and Budget Policy for 2025" was reviewed and approved.

This law introduces amendments and additions to several legislative acts to establish the fundamental principles of tax and budget policy for 2025. It aligns national legislation with the requirements of the World Trade Organization and addresses tasks aimed at simplifying business conditions, as outlined by the President during an open dialogue with entrepreneurs.

The main tax rates for 2025 will remain unchanged. Specifically, the value-added tax (VAT) will stay at 12%, the base corporate income tax rate will be 15%, personal income tax will remain at 12%, the property tax rate for legal entities will be 1.5%, the land tax for agricultural land will be 0.95%, and the water use tax for irrigation and fish farming will be set at 100 soums per cubic meter. The social tax rate will remain at 12% (25% for budgetary organizations), and the turnover tax rate will stay at 4%.

The adoption of this law aims to streamline the fulfillment of tax obligations, creating more favorable conditions for businesses.

While maintaining the current tax rates, the 2025 tax policy places special emphasis on promoting healthy lifestyles and encouraging environmental protection.

To improve business conditions and reduce the tax burden, the excise tax on mobile communication services will be abolished as of 1 January 2025. Additionally, publishing and printing enterprises will be exempt from corporate income tax from 1 January 2025, to 1 January 2029.

The law also expands the powers of local Councils of People’s Deputies (Kengashes) in managing local budgets. They are now authorized to set fixed tax rates for individual entrepreneurs within minimum and maximum thresholds, based on the economic development levels of their respective territories. Furthermore, they will have the ability to apply increasing or decreasing coefficients to tax rates for water use and the extraction of non-metallic construction materials.

Senators highlighted that the law places particular importance on expanding the revenue base of the budget, promoting healthy lifestyles, and protecting the environment.

Following discussions, the law was unanimously approved by the senators.