Uzbekistan continues to enhance investment climate by adopting new measures to support entrepreneurs and investors. In June–July 2025, the Government launched several initiatives aimed at boosting business development and stimulating foreign investment.

1. Promoting green public procurement

On June 18, the Cabinet of Ministers adopted Resolution “On measures to improve the support system for green public procurement” The resolution sets a target to increase the share of environmentally friendly procurement to 30% by 2030. Starting from 2026, public procurement for certain product categories (meat, dairy, textiles, packaging, furniture, etc.) will require mandatory compliance with environmental criteria.

Key provisions include:

• Eco-labeled suppliers will benefit from a 30% reduction in intermediary service fees and will be exempt from providing security deposits.

• Public sector buyers will be required to give priority to proposals submitted by eco-labeled suppliers.

2. Stimulating inflows of foreign direct investment

On June 23, the President of Uzbekistan signed the Decree “On additional measures to stimulate the attraction of foreign direct investment” The document updates the list of priority sectors and extends the geographic scope of tax incentives:

• Tax exemptions (exemption from land tax, property tax, and water usage tax. depending on the volume of direct private foreign investments) are now available in the Bekabad, Buka, and Pskent districts of Tashkent Region (categories 4–5).

• The agricultural production sector has been officially included in the list of priority sectors. To attract foreign private investment and promote modern technology adoption, the government will offer tax incentives, including exemptions from land tax, property tax, and water resource usage taxes, based on investment volume.

• Agricultural enterprises may access loans of up to UZS 15 million per hectare for the cultivation of forage crops, repayable within 6 months at a rate not exceeding the Central Bank’s base rate plus a 2% bank margin.

3. Reducing administrative barriers and expanding tax incentives

On June 26, Uzbekistan enacted the Law “On amendments and additions to the Tax Code of the Republic of Uzbekistan” introducing several provisions aimed at easing administrative burdens and broadening tax benefits:

• Tax offsets: аt the taxpayer’s request, overpaid amounts will be credited toward outstanding tax or future payments within three business days.

• Support for “Mahalla Service” Companies: income derived from public works and selected paid social services will be excluded from the taxable base. Land will also be exempt from land tax, and employee salaries will be exempt from personal income tax.

• Automation: From October 2025, tax reporting on water use in agriculture (including fish farming) will be automatically generated via the “Suv hisobi” system.

• Additional incentives: Leather and footwear enterprises located in the Sharof Rashidov district (Jizzakh Region) and Akhangaran district (Tashkent Region) industrial zones will be exempt from property, land, and water resource usage taxes from January 1, 2025, to January 1, 2026.

4. Participation in the international carbon market

On July 8, the Presidential Decree “On measures for participation in the international carbon units market” entered into force, aiming to fulfill Uzbekistan’s international commitments under the Paris Climate Agreement. Specifically, it targets a 35% reduction in greenhouse gas emissions per unit of gross domestic product by 2030

The document outlines the following key measures:

• 80% of internationally transferred mitigation outcomes (ITMOs) will be allocated to the international market, excluding those generated through state-funded or public-private partnership (PPP) projects.

• 20% of ITMOs will be reserved to meet Uzbekistan’s national commitments and will not be traded, in order to mitigate the risks of overselling.

• A National Carbon Registry will be established in 2026 with the support of international financial institutions.

Sources:

1. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 371, dated June 18, 2025

2. Decree of the President of the Republic of Uzbekistan № DP-97, dated June 23, 2025

3. Law of the Republic of Uzbekistan No. LRU-1071, dated June 26, 2025

4. Decree of the President of the Republic of Uzbekistan No. DP-110, dated July 7, 2025