Reforms in the agricultural sector are continuing in Uzbekistan. The areas for cotton and grain are being reduced and reallocated to food crops. At the same time, until now, a 12% VAT has been applied to the sale of products.
According to the new system, starting from January 1, 2026, farmers and peasants will not pay VAT on the sale of all products except cotton and grain. However, the right to reclaim the VAT accounted for on seeds, fertilizers, fuel, transport, and electricity costs during the production process will be retained.
According to official information, as a result of this change:
farmers and peasants will retain nearly 300 billion soums per year;
an additional opportunity to reclaim 400 billion soums in taxes will be created;
the shadow economy will shrink, and the number of industrialized plantations will increase.
