Presidential Decree to boost local government authority in Uzbekistan

From 2025, the authority of local councils in Uzbekistan will be significantly increased. This change is outlined in the Presidential Decree "On measures to establish a new system for ensuring high economic growth and employment in the regions and to increase the role and responsibility of local governments in this regard," adopted on December 20.  

According to the decree, the Jokargi Kenes of the Republic of Karakalpakstan, as well as regional and Tashkent city councils of people's deputies, will be tasked with:  
- Establishing fixed tax rates for individual entrepreneurs within the framework of the minimum and maximum fixed rates of income tax on individuals, based on the economic development level of districts (cities).  
- Applying a coefficient of up to twice the minimum real estate rental value per square meter used for taxation in districts (cities). In Tashkent, this coefficient will apply to land tax in designated zones.  

Additionally, district and city Councils of People's Deputies will be authorized to:  
- Apply a coefficient of 0.7 to 1.5 to adjust tax rates for water resource usage.  
- Establish a coefficient of up to 1.3 times the fixed tax rates for subsoil use related to non-residential construction materials.  

This decree introduces a system designed to enhance the responsibility and accountability of local governments. The reforms aim to foster greater initiative and ownership of development projects at the regional level.