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Economy 06/01/2024 Uzbekistan to introduce an excise tax on carbonated drinks and energy drinks from 1 April
Uzbekistan to introduce an excise tax on carbonated drinks and energy drinks from 1 April

Tashkent, Uzbekistan (UzDaily.com) -- From 1 April 2024, Uzbekistan will introduce an excise tax on carbonated drinks containing sugar or other sweetening or flavoring substances and packaged in consumer packaging (except energy and tonic drinks).

On 28 December, President of Uzbekistan Shavkat Mirziyoyev signed a law on amendments to legislation in connection with the adoption of the main directions of tax and budget policy for 2024.

According to this document, from April, Uzbekistan will establish an excise tax of 500 soums per liter on carbonated drinks containing sugar or other sweetening or flavoring substances and packaged in consumer packaging (except energy and tonic drinks).

Uzbekistan is also introducing an excise tax on energy and tonic drinks. The excise tax rate on these drinks will be 2,000 soums per liter.

Excise tax revenues from these drinks will go to the Medical Development Fund.

The excise tax on carbonated drinks containing sugar or other sweetening or flavoring substances is introduced in accordance with the recommendation of the World Health Organization (WHO).

In 2017, WHO provided recommendations for introducing a tax on sugary soda, based on the fact that its excessive consumption leads to diabetes, tooth decay, and obesity. A message from WHO said that taxation could help reduce sugar consumption, and also specified that increasing the price of soft drinks could help reduce sugar consumption. The recommendation also stated that increasing the price of carbonated drinks by 20% could reduce its consumption by approximately 20%. Drinking sugary drinks every day is associated with long-term effects on the body.

 

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