Uzbekistan Introduces Double Tax for Irrational Water Use

Анна Федорова Economy
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Uzbekistan introduces double tax for irrational water use


Starting from 2027, Uzbekistan will implement a new taxation system concerning the use of water resources, which will significantly impact the financial performance of inefficient owners. For entrepreneurs who do not install modern meters and systems for water conservation, the tax rate will double.

Particular attention will be paid to industries with high water consumption. For example, farmers engaged in rice cultivation and aquaculture will be required to equip water intake and return points with "smart" sensors. This will ensure digital monitoring, allowing for the control of actual consumption. Ignoring this requirement will result in a doubling of the tax rate.

The government plans to use a differentiated approach depending on the conditions of each region. In areas where water scarcity is observed, farmers can expect state support: the implementation of water-saving technologies will be encouraged through increased subsidies. At the same time, in regions with good water reserves, the absence of modern irrigation technologies will lead to an increase in the tax rate.
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