Uzbekistan Draft Law Proposes VAT Exemption on Cattle, Sheep and Goat Imports to 2029

A draft law under review in Uzbekistan would expand tax incentives for entrepreneurs, including a VAT exemption on imports of cattle, sheep and goats. Under the bill, such imports would be exempt from value added tax from 1 January 2026 to 2029. Members of the local working group for holding prestigious events of FIFA and the Asian Football Confederation (AFC) would be exempt from income tax until 2030.

Residents of IT Park would be exempt from all taxes until 2040, excluding payment organisations, payment system operators, e-commerce platform operators, electronic payment systems and microfinance organisations. Other provisions cover tax breaks for silk production and reduced rates for certain entrepreneurs in Karakalpakstan and districts in the fifth category of economic development.

The draft also caps penalties on unpaid tax debt at the amount of the debt itself, and provides for automatic lifting of bank account transaction suspensions when a taxpayer submits required explanations or amended returns following a desk tax audit. The bill was adopted in its first reading.