Uzbekistan proposes major tax reforms and higher bus fares

The Fiscal Analysis Institute, operating under Uzbekistan's Ministry of Economy and Finance, presented a suite of tax policy changes slated for 2027. Key proposals include abolishing the 1 % cashback scheme, imposing a 5 % tax on interest earned from bank deposits, and shifting personal income tax to a progressive scale while keeping the corporate profit tax at 15 % (reducing the current 20 % rate for banks and mobile operators). Additional measures aim to raise alcohol excise duties and improve VAT efficiency.

In parallel, the institute suggested raising public‑transport fares to align costs with economic realities. Currently, state subsidies cover about 65 % of transport expenses, amounting to 1 trillion soms in 2024 and projected to reach 1.385 trillion soms by 2026. Financing the shortfall would require roughly 1.9 trillion soms annually. The proposal calls for tariff adjustments, review of low‑ridership routes, and KPI‑based payments to transport operators to improve efficiency and transparency.