Part of VAT revenues to be transferred to local budgets

In Uzbekistan, a portion of value-added tax (VAT) revenues will be transferred to local budgets. This is stipulated in the presidential resolution adopted on December 26 titled “On Additional Measures to Increase the Financial Sustainability of Local Budgets and Budgetary Organizations and to Strengthen Budget Discipline.”

According to the resolution, starting from January 1, 2026:

• 5 percent of VAT revenues will be transferred to the local budget of Tashkent city, while 20 percent will be allocated to the local budgets of other regions;
• Allocation standards will be established for district and city budgets from revenues generated by VAT, corporate income tax, excise tax paid on the retail sale of gasoline, diesel fuel, and gas to final consumers, as well as state duties, fines, and fees transferred to local budgets;
• District and city councils of people’s deputies will be granted the authority to increase the capped rates of fees for the right to sell alcoholic beverages, including by public catering establishments, by up to 20 percent. Revenues from these fees will be fully directed to district and city budgets.

The following revenues will also be transferred to local budgets and used as additional funding sources:

• Funds from the direct leasing of agricultural land that were previously designated for transfer to the State Budget will instead be directed to the budgets of the respective districts and cities;
• Taxes collected from dehkan markets, specialized markets, and goods markets and previously transferred to the republican budget will be redirected to the budgets of the districts and cities where these markets are located, to be used for improving infrastructure in the market sector and local communities.