Tashkent, September 05, 2025 – The Europe Today: President Shavkat Mirziyoyev on Wednesday reviewed a presentation outlining new measures to strengthen value chains in Uzbekistan’s agricultural sector, including significant tax incentives aimed at supporting farmers and increasing transparency.
In recent years, Uzbekistan has implemented major structural reforms in agriculture, reducing sown areas for cotton and grain in favor of food crops, planting 160,000 hectares of new orchards and vineyards, and carrying out 1,500 food production projects worth $1 billion.
Despite progress, challenges remain, including the high share of shadow economy activity in agriculture, with much production not reflected in official reporting. During his open dialogue with entrepreneurs, the President highlighted the need to reduce the tax burden on farmers to encourage transparency.
Based on proposals prepared with the participation of the International Monetary Fund and local and foreign experts, starting January 1 next year, the value-added tax (VAT) will be applied at a zero rate to farmers selling their own products. The exemption will apply to fruits, vegetables, meat, milk, eggs, and other agricultural goods, excluding cotton and grain.
Farmers will continue to benefit from VAT refunds on seeds, fertilizers, fuel, transport, electricity, and other production expenses. These measures are expected to save farmers an additional 300 billion UZS annually, while another 400 billion UZS could be recovered through the new benefits.
According to the government, the reforms will enhance transparency, encourage the establishment of industrial-type plantations, and boost enterprises engaged in processing agricultural products.
President Mirziyoyev instructed responsible officials to ensure farmers are informed about the new procedures, oversee their effective implementation, and step up efforts to expand food production across the country.
