Uzbekistan Introduces Double Tax for Inefficient Water Use

Сергей Мацера Economy
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Uzbekistan introduces double tax for irrational water use


Starting from 2027, a new taxation system aimed at combating the inefficient use of water resources will come into effect in Uzbekistan. This initiative will hit the financial interests of those owners who do not install modern accounting and water-saving systems, as their tax will double.

Particular attention will be given to sectors with high water consumption. For example, farms engaged in rice cultivation and aquaculture will be required to equip their water intake and discharge points with "smart" sensors. This will allow for digital monitoring of consumption, and failure to comply with this requirement will result in a doubling of the tax.

Government authorities plan to apply a differentiated approach depending on the water conditions of various regions. Farmers in water-scarce areas will be able to count on support, as the implementation of water-saving technologies will be encouraged through increased subsidies. At the same time, in areas where water supply is adequate, the absence of modern irrigation systems will serve as a basis for increasing the tax rate.
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