In response to numerous complaints about difficulties in securing land for construction, President Shavkat Mirziyoyev has unveiled a new system for allocating land plots to investors. Key changes include the removal of the 12% VAT on land auctions and the option to pay for land in installments: three years in Tashkent and up to five years in other regions. Investors who pay in full upfront will receive up to a 20% discount.
The new system mandates timely construction on acquired land, with extensions granted only if delays are caused by government officials.
Additionally, industrial enterprises will no longer face double charges for exceeding energy and gas limits. Instead, they will pay the base rate up to 20% over the limit, and a 20% surcharge for usage beyond that threshold, rather than the current doubling of rates.
Special tax incentives are introduced for the food service industry starting January 2025. Restaurants and cafes will be eligible for a VAT cashback if 40% to 60% of their monthly turnover is through cashless transactions, with refunds ranging from 20% to 40%. These businesses will also see their profit tax halved and be allowed to operate outdoor spaces in the spring-summer season without additional approvals.
A similar 20% VAT cashback system will be available for hoteliers and tour operators starting October 1 of this year.
