Fiscal Analysis Institute proposes carbon tax for major industrial companies from 2028
The Fiscal Analysis Institute has proposed introducing a carbon tax on Uzbekistan's largest industrial emitters from 2028 as part of efforts to reduce greenhouse gas emissions and improve energy efficiency.
The Fiscal Analysis Institute has put forward a plan for a carbon tax, targeting major industrial companies starting in 2028.
This proposed tax would be determined either by the amount of carbon dioxide (CO₂) a company emits or by the volume of hydrocarbon fuel it consumes. Initially, the tax would only apply to the nation's most significant polluters, with a phased expansion to include a wider array of businesses over time.
The institute suggests that this tax would motivate companies to enhance their energy efficiency and decrease greenhouse gas emissions. Furthermore, it would assist exporters in mitigating the potential for carbon-related fees in international markets by establishing a domestic carbon pricing system.
As part of the proposal, a comprehensive nationwide emissions inventory is planned for 2027. This inventory would be crucial in defining the tax base, specific rates, and overall reach of the new levy.
Should the proposal be enacted, the carbon tax would commence in 2028, with a gradual increase in tax rates anticipated for 2029–2030. The institute also projects that this new tax would start contributing to government revenue beginning in 2028.