Legislation in Uzbekistan will see a range of changes and new developments coming into force from January 1, 2025. Below are the main changes that will come into effect from this date.
New powers have been granted to local governments
District (city) governments have been granted administrative powers in the following areas:
- Establishing a Public Council of Entrepreneurs in districts (cities) with the aim of creating a "permanent connection" system between state governance bodies and entrepreneurs;
- From January 1, 2025, appointing and dismissing the heads of district (city) departments of ministries and agencies in agreement with the regional administrations of the respective ministries and agencies, as well as implementing measures for rewarding or disciplinary actions for the relevant officials;
- From January 1, 2025, to January 1, 2026, organizing the activities of the district (city) administration based on a new approach to "Serve the interests of the population and entrepreneurs" as a legal experiment in the listed districts (cities).
The price of cash fares for buses and metro in Tashkent has increased
In the capital's public transport routes (bus and metro), a fixed tariff for a single passenger trip has been set at 3,000 UZS. In this case, when paying via an electronic payment system (transport or bank card), the rate remains unchanged—1,700 UZS. All buses will stop accepting cash for fares. To travel by bus using cash, one-time QR-coded tickets must be purchased from all payment terminals located at bus stops and nearby areas in Tashkent city, namely Paynet, MultiPay, and Easy info kiosks.
Wages for state cultural institutions and organizations’ employees will be increased
According to the President's decree "On increasing the salary amounts for employees working in the field of culture and art, information-library, and museums", the wages of employees of state culture institutions and organizations will be increased by 20 percent from January 1, 2025.
An additional premium will be paid to certain educators
Starting from January 1, 2025, educators teaching the subjects of the mother tongue and literature, and history in general education institutions under the Ministry of Preschool and School Education system, who have the relevant level of certificate obtained through the national assessment system of the Ministry of Higher Education, Science, and Innovations, will receive a monthly additional premium of 50 percent relative to their tariff rate.
Children of impoverished families will be admitted to state kindergartens on a preferential basis
Within the scope of the "From Poverty to Prosperity" program, children of impoverished families will be admitted to state preschool education institutions on a preferential basis.
The practice of temporarily restricting acceptance of payments for electricity for those who did not pay after being warned about garbage debt entered its third phase
The President's decree has specified the implementation of this practice in three phases:
- In the first phase, in Tashkent and Nukus cities, and in regional centers from June 1, 2024, for a six-month debt;
- In the second phase - in all regions of the republic from November 1, 2024, for a three-month debt;
- In the third phase, in all regions of the republic from January 1, 2025, for a one-month debt.
The law "On the State Budget of the Republic of Uzbekistan for 2025" came into effect
The law regulates relations related to the formation and execution of Uzbekistan's consolidated budget for 2025, maintaining the socially oriented nature of the expenses.
VAT and profit tax rates will not be increased
According to the President's decree "On the next measures to provide equal conditions and fair competition for entrepreneurs", VAT and profit tax rates will remain unchanged until 2028.
In addition, until January 1, 2028, for entrepreneurs engaged in manufacturing activities in the fields of sewing-knitwear, footwear, and leather goods, the profit tax rates and income tax rates for their employees have been set at 1 percent.
The tax rate for certain land plots will be reduced by 50 percent
Replacing the privilege of exemption from land tax on lands occupied by newly established orchards, vineyards, and mulberry plantations, the tax rate for these land plots will be reduced by 50 percent.
The turnover of passenger transportation services at uniform tariffs and the sale of goods and services by legal entities that are the sole participants of public associations of persons with disabilities are provided VAT privileges were abolished.
The profit tax rate for public catering enterprises was reduced by 50 percent
Until January 1, 2028, the profit tax rate for public catering enterprises was reduced by 50 percent. Also, for entrepreneurs providing public catering services, a system of returning part of the VAT paid up to the 25th of each month in the following amounts from the state budget will be introduced until January 1, 2028:
The part of monthly turnover in non-cash form:
- For general catering enterprises exceeding 60 percent—40 percent of the VAT paid to the budget;
- For general catering enterprises less than 60 percent—20 percent of the VAT paid to the budget;
- For tour operators and hoteliers—20 percent of the VAT paid to the budget.
Some administrative responsibilities for entrepreneurs were abolished
From January 1, 2025, administrative responsibility was abolished for:
- Violating the procedure for reflecting fiscal marks;
- Violating the rules of mandatory digital marking of goods (products) identified by identification means;
- Concealing the number of employees.
A financial penalty for conducting entrepreneur activities without state registration as an individual entrepreneur by a physical person was abolished.
A social tax at a 1 percent rate will be paid when a member of a family entered into the register of impoverished families is employed
When members of families receiving child support and material assistance for low-income families are officially employed, self-employed, or start entrepreneurial activities, this support and assistance will continue until the end of its period, but not for more than 6 months.
The social tax for a family member entered into the register of impoverished families employed with a monthly wage not less than 1.5 times the minimum wage will be paid at a 1 percent rate for three years.
Assistance measures for impoverished families are provided based on a social contract, taking into account the employment of able family members, efficient use of their household plots (planting crops), ensuring the education, vocational training, and foreign language learning of family members, including children, monitoring their health, and keeping their homes clean.
A valuation system for fruit and vegetable growers will be introduced
Within 12 months from the date district (city) commission concludes that the economic gardens and vineyards are inefficient and low-yielding, if new gardens or vineyards are not established on the lands where these gardens and vineyards are located, the land tax will be tripled.
Initiators in establishing new gardens will be exempt from value-added tax and customs duties when importing certain types of graft plants, grafts, mother stocks, and technologies needed for their own use from foreign countries.
Permission was granted to engage in bookmaking activities
Permitted was the organization of gambling activities based on risk on the Internet network and the engagement in bookmaking activities.
Lottery, organizing games on the Internet, and bookmaking activities will be carried out based on licenses provided by the National Agency for Project Management in accordance with legislation.
Furthermore, a taxation system for engaging in lottery as well as organizing games on the Internet and bookmaking activities for a period of 5 years was determined, including:
- Legal entities conducting lottery, organizing games on the Internet, or carrying out bookmaking activities are considered taxpayers on the turnover at a rate of 4 percent of the total income received from lottery and bookmaking activities, excluding paid-out winnings and refunded bets;
- Incomes received by individuals from winnings in lotteries and online games and betting conducted under license are exempt from income tax.
Using wild animals in circus shows was prohibited
With the Cabinet of Ministers' decree "On measures to improve the regulation of keeping wild animals", a list of wild animals prohibited from being kept by individuals under semi-free living conditions, in artificially created living environments, or in captivity, including tigers, lions, cheetahs, jaguars and all their subspecies, gorillas, chimpanzees, all species of large constrictor snakes, all species of horses (excluding domestic horses) was approved.
An electronic bracelet will be introduced for individuals under house arrest
From January 1, 2025, a system of remote real-time control over the location of individuals under house arrest and those sentenced to restricted freedom will be gradually introduced.
The national time scale will be introduced
The national time scale of Uzbekistan (UTC UZ) will be introduced. It will be used as the accurate time of Uzbekistan.
