Local budgets to retain additional taxes to boost revenue and autonomy

To enhance the revenues and independence of local budgets, certain types of taxes will now be retained by district and city budgets. This measure was highlighted in the information presented to President Shavkat Mirziyoyev on January 3 regarding the implementation of the Law “On the State Budget of the Republic of Uzbekistan for 2025.”

The following taxes will be additionally retained by local budgets:

- Full retention of turnover taxes, land, and property taxes from legal entities, excluding those paid by large taxpayers;
- At least 50 percent of personal income tax revenues, except for payments made by large taxpayers;
- 50 percent of revenues from the privatization of state property.

Furthermore, district and city councils have been granted the authority to apply coefficients to certain tax types.

The 2025 State Budget Law, which includes 17 articles and 10 annexes, projects a 6 percent growth in the country's gross domestic product (GDP).

"The consolidated budget was approved with a 3 percent GDP deficit, with planned revenues of 431 trillion sums and expenditures of 480.5 trillion sums," the message stated.

The balance of the state budget and state trust fund budgets reflects a 2 percent GDP deficit. State budget revenues are projected at 308.5 trillion sums, while expenditures, including transfers to state trust funds, are set at 344.8 trillion sums.

"For 2025, the revenue forecast for the budgets of the Republic of Karakalpakstan, regional budgets, and the city of Tashkent stands at 65.8 trillion sums, with projected expenditures of 84.3 trillion sums. Inter-budgetary transfers amounting to 18.5 trillion sums will be allocated from the republican budget to local budgets," the message stated.

The social focus of budget expenditures remains intact. This year, 52 percent of total state budget expenditures will be directed toward education, healthcare, social protection, science, culture, sports development, and housing for vulnerable populations.