President Mirziyoyev signed a decree on December 20 entitling more financial independence to the provinces from January 1, 2025.

In particular, it is planned to gradually achieve full coverage of expenses of district (cities) budgets through their own income and sources.

To this end, 100% revenues from turnover tax, property tax of legal entities, land tax from legal entities, and from the lease of state assets will be transferred to local budgets from January 1, 2025. They will also receive at least 50% of revenues from personal income tax. The exception is districts and cities where personal income tax is paid by large taxpayers, as well as taxpayers whose income exceeds expenses.

90% of the proceeds received from the sale of shares (stakes) of assets owned by mayor offices will be equally distributed between the budget of Karakalpakstan, the provincial budgets, the city of Tashkent budget and the budget of the district (city) in which the facility is located. Exception: part of the money can be deducted to cover certain expenses, as provided for by law.

Starting from 2025, the Supreme Counci of Karakalpakstan, the people's deputies councils of provinces and Tashkent shall be granted the authority to identify additional reserves of budget revenues.

In particular, in each district and city, depending on their level of economic development, fixed tax rates will be established for solo entrepreneurs. These rates will be within the minimum and maximum amounts of personal income tax.

Local councils will have the right to increase the minimum rent for 1 square meter of real estate up to 2 times the minimum established level. This rule will be applied by districts and cities, especially in land tax zones in Tashkent.

Councils will also be able to lower or raise the tax rate for the use of water resources in the range from 0.7 to 1.5 times. The exception is agricultural enterprises, utilities, power plants and large taxpayers approved by the presidential decree.

Local deputies will be entitled to increase the subsoil use tax rate up to 1.3 times for the extraction of non-metallic building materials, except for limestone used for cement production.

The Chairman of the Council of Ministers of Karakalpakstan and provincial governors are allowed to use the funds of the Entrepreneurial Infrastructure Development Fund to implement large (driver) projects and provide land plots with engineering and communication networks for their subsequent sale through online auctions.

In July, the President of Uzbekistan instructed to consider the issue of leaving half of the personal income tax in district budgets. It is expected that this will increase the interest of the districts and bring business out of the "shadows".

During his speech in the Legislative Chamber of the Oliy Majlis on November 18, Shavkat Mirziyoyev proposed leaving 100% of land, property and turnover taxes, as well as at least 50% of income tax, in district budgets.