The Ministry of Economy and Finance of Uzbekistan has proposed to cease granting new social tax benefits to companies and completely abolish existing support measures by 2030.
According to the ministry's analysis, canceling these benefits will create more equal and competitive conditions for doing business. Currently, thousands of enterprises benefit from a reduced social tax rate, which varies from 12% to 1% or even zero.
The ministry believes that the current system leads to uneven financing of pension insurance. In 2025, 65,000 enterprises received social tax benefits, with total support amounting to 3.2 trillion sums.
Moreover, reducing tax obligations decreases company expenses, while pension liabilities to employees remain. Therefore, the ministry proposes establishing a single social tax rate for all enterprises.
Instead of exemption from social tax payments, the ministry suggests supporting businesses through subsidies from the state budget. According to the ministry's proposal, this approach will ensure equal conditions for paying the social tax and financing workers' pension rights with the same salary level, regardless of their place of employment.
Revenues from the social tax are directed to the Pension Fund, but current receipts are insufficient to cover pension payment expenses, requiring additional state funding. The Ministry of Economy and Finance expects that abolishing social tax benefits will increase revenues to the Pension Fund and reduce the burden on the state budget.
