VATupdate

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From 2026, Part of VAT Revenue to Remain Locally for District Budgets and Infrastructure

  • From January 1, 2026, a portion of VAT revenue will remain in local areas, with half allocated to district budgets to double their income base and improve neighborhood infrastructure.
  • In Tashkent, 5% of VAT revenue will stay locally; in other regions, 20% will remain, with half going to district budgets.
  • Additional district budget sources include 50% of revenue exceeding forecasts, income from leasing agricultural land, and full market revenues.
  • District and regional leaders are allowed to cut redundant staff and use the savings for local issues, aiming to generate 5 trillion soums for infrastructure.
  • Next year, 20 trillion soums will be allocated to regions for neighborhood development projects, with a focus on job creation and effective budget use; new urbanization reforms and the “Sustainable City” platform will also be launched.

Source: kun.uz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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