Starting January 1, 2026, Uzbekistan will introduce a dramatically reduced 1% turnover tax for individual entrepreneurs and self-employed citizens earning up to 1 billion sum ($80,000) annually — down from the current 4%. This landmark reform, reported by Asiaplus.tj, aims to pull millions out of the informal economy and integrate them into the formal financial system.
The preferential tax regime will remain in effect until the end of 2030, offering small businesses a five-year window to adapt, scale, and thrive. Far from a temporary incentive, this is a strategic pillar of Uzbekistan’s broader economic transformation — unfolding as the country posts strong GDP growth (+6.5% forecast for 2025), attracts record foreign investment ($12.7B in 7 months), and solidifies its role as Central Asia’s premier economic hub.
Digital Infrastructure: The Backbone of Reform
To ensure transparency and ease of compliance, the Ministry of Finance is launching a unified digital platform for SMEs, integrating:
- Online business registration
- E-wallet management
- Customer payment processing
- Automated tax calculation and remittance
Beginning November 1, 2025, new technologies will become mandatory for all retail businesses:
- QR payments & tap-to-pay for seamless transactions
- Biometric signatures & SMS confirmations — legally equivalent to paper documents
- Mandatory QR codes at every point of sale — enhancing traceability and oversight
Why This Matters Now
- Fighting the Shadow Economy: The World Bank estimates 30% of Uzbekistan’s economy remains informal. A 4x tax cut is a powerful incentive to come into the light.
- Entrepreneurship Boom: With over 2.5 million registered entrepreneurs, this policy could double that number — generating millions of new jobs.
- Digital Leap: From e-gov to AI-assisted tax filing, Uzbekistan is building a “smart economy” — boosting revenue collection while reducing corruption.
- Consumer Demand Engine: As household incomes rise (+9.2% real growth in 7 months), small businesses are critical to sustaining domestic consumption.
Economic Momentum in Context
Uzbekistan’s economy is firing on all cylinders:
- Gold exports (Jan–Aug 2025): $8.42B (+69% YoY)
- FDI inflows: $12.7B (+31% YoY)
- Inflation: slowed to 6.8% (within Central Bank’s 5–7% target)
- Forex reserves: surpassed $50B
This tax reform is not populism — it’s an investment in the future. By lowering barriers and digitizing compliance, Uzbekistan is laying the foundation for Central Asia’s most dynamic, transparent, and human-centered micro-economy.
CentralasianLIGHT.org
Sept. 23, 2025