Uzbekistan govt advisory body proposes income tax cut for banks to 15% from 20%

An Uzbek government advisory agency has come up with a proposal to cut income tax for banks and other financial services providers to 15 per cent from today’s 20 per cent and introduce value-added tax to compensate the state for consequent revenue shortfalls.

Besides banks, the proposed tax reduction would apply to mobile network operators, shopping centres, markets and polyethylene pellet manufacturers, Uzbekistan’s UzDaily.uz news website said in citing the proposal of the Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration and Fiscal Analysis (Fiscal Institute).

The institute also proposed levying a value-added tax on fixed-fee commission-based financial services as a way to fully compensate the state for an estimated annual gap of 859bn soums ($72m) the income tax cut would create, UzDaily.uz said.

Interest income would be exempt from VAT.

The institute was established in November 2025 by a decree by President Shavkat Mirziyoyev on measures to improve the taxation and customs systems and suppress the shadow economy.