It was proposed to stop granting social tax incentives to businesses in Uzbekistan

A proposal has been put forward in Uzbekistan to stop granting social tax incentives for businesses

It is proposed to stop granting new social tax incentives for enterprises in Uzbekistan, and to completely abolish existing incentives starting from 2030. This was announced by the Ministry of Economy and Finance.

According to the analysis, abolishing the incentives is considered important for creating equality and a competitive environment in business. However, for thousands of enterprises, the social tax rate, which is actually 12 percent, has been reduced to 1 or 0 percent. This raises the issue of equality and targeting in financing pension insurance. For this reason, it is proposed to make paying the social tax at a uniform rate mandatory for everyone.

It is noted that in 2025, 65,000 enterprises utilized social tax incentives worth nearly 3.2 trillion soums.

"Although this reduced the enterprise's expenses, the future pension liability for its employee remains. Therefore, it is proposed to stop granting new social tax incentives, and to completely abolish existing incentives starting from 2030," the ministry's statement said.

Going forward, supporting businesses is planned to be carried out not through social tax exemptions, but by allocating subsidies from the state budget.

"As a result, employees receiving the same salary, for example, 6 million soums, will have equal conditions in paying social tax and financing pension rights, regardless of which enterprise they work for," the ministry announced.

In general, social taxes go to the Pension Fund. Currently, because the fund's revenues are insufficient to cover pension payment expenses, additional funds are being allocated from the state budget. If the social tax incentives are abolished, revenues to the fund are expected to increase, reducing the burden on the budget.