FMCG Tax Digest (June 2026)

In June 2026, government of the Republic of Uzbekistan (the “RUz”) continued to implement tax and economic reforms aimed at incentivising certain industries and supporting investment activities.

This review presents key tax developments based on adopted laws and regulations‑ as well as draft laws, which, we believe, can have an impact on the companies operating in the FMCG sector.

The previous issues featuring the developments are available at the EY web-site. Tax & Law Alerts | EY - Global.

Indexation of the basic estimated values and the effect on the tax burden

Decree of the President of the RUz No. UP‑155 On Increasing Wages, Pensions, Scholarships, and Benefits dated 23 June 2026 provides for the increase in the basic estimated value (the “BEV”).

In particular, as from 1 September 2026, the BEV is set at UZS 440,000.

These changes cover tax liabilities, since the BEV is used, among other things, to determine the threshold for the transition to the general tax regime, determining whether an asset qualifies as a depreciable asset, determine the tax rates, the amounts of fines, and advance payments for certain taxes.

Tax incentives for scientific research financing

Decree of the President of the RUz No. UP‑98 On Improving the System of Training and Certification of a New Generation of Research Personnel dated 26 May 2026 provides for the introduction of additional tax incentives aimed at involving business in research and development activities.

In particular, it sets out that the income tax base for business entities with high sustainability ratings is determined by deducting 150% of the funds allocated to finance research projects when acting as an industry partner.

Additionally, it is provided that profit from the sale of goods (work, services) created as a result of research and development is exempt from income tax for three years from the start of such sales.

Support measures for the cotton textile industry

Resolution of the President of the RUz No. RP‑246 On Measures to Increase Financial Stability in the Cotton‑Textile Sector and Provide Additional Support for Deep Processing of Cotton Fibre dated 29 June 2026 provides for a set of measures intended to support textile industry entities, increase the export potential and incentivise deep cotton fibre processing.

In particular, for supporting export-oriented entities, it provides for putting forward proposals on the cancellation of export customs duties for bleached knit fabric (HS Code 6006 21 000 0) until 1 January 2027 and for setting out export customs duties of 5% for cotton fibre waste until 1 January 2027 (HS Code 5202).

In addition, the Resolution provides for additional measures of tax administration for financially sound entities operating in the industry. In particular, it sets out that during the period until 1 July 2027, the excess input VAT (negative VAT balance) for clusters and textile manufacturers rated as category A and higher according to the business entities sustainability rating is refunded within two days without conducting tax audit.

At the same time, the Tax Committee of the RUz was instructed to implement the appropriate system for accelerated refund of VAT for the above taxpayers within two weeks.

Support to the agricultural sector and development of the resource base

Decree of the President of the RUz No. UP‑108 On Measures to Support the Establishment of Intensive Industrial Orchards and the Renewal of Obsolete Orchards dated 9 June 2026 provides for comprehensive state support of the agricultural projects.

Along with the financial incentive tools (including soft bank lending and subsidising of investment projects), the Decree includes certain provisions that have a direct impact on the tax burden of economic entities.

In particular, the document provides for both incentives and measures aimed at the stimulation to use land resources efficiently:

• For encouraging the implementation of water-saving technologies, it sets out that, starting from 1 August 2026, for using water received from drilled wells in industrial orchards where modern water-saving technologies have been implemented, the water tax rate is applied in the nominal value of UZS 1 for the period of five years.
• It also provides for measures aimed at the efficient use of allocated land resources. In particular, from the date of issue of the expert report by the Agency for Agricultural Industry Development, it is set out that:
  • If new orchards and vineyards have not been cultivated within 12 months, the land and water tax rates are tripled for the areas where these orchards are located;
  • If new orchards and vineyards have not been cultivated within 24 months, water intake is prohibited for the areas where these orchards are located.

These provisions reflect the government’s multimodal approach aimed at both driving investments in the agricultural sector and ensuring efficient and appropriate use of allocated resources.

How can EY help?

We would be happy to assist you in such areas as:

• Advising on the applicability of new legal requirements to your company;
• Assessing the impact of these developments on the existing business structures, including taxation of existing and planned transactions;
• Revising and updating the company’s tax accounting policies to reflect these developments;
• Drafting queries to the respective regulatory authorities on the issues of application of these legal standards that may require clarification.

We hope that you will find this information useful. We will be glad to advise you on these developments in more detail and discuss them with you if there are any questions.