Uzbekistan’s 1% Tax Cashback System May Be Changed

Uzbekistan’s 1% Tax Cashback System May Be Changed

A proposal has been made to modify Uzbekistan’s 1% tax cashback system provided to consumers. The Fiscal Analysis Institute under the Ministry of Economy and Finance announced the initiative. It was noted that the cashback system was initially effective in encouraging the habit of requesting fiscal receipts. However, experts now argue that with the development of artificial intelligence, Big Data, and online cash register systems, the need for mass monetary incentives has decreased. For reference: in 2022, 820 billion soums were allocated for cashback payments, while in 2026 expenses are projected to reach 1.8 trillion soums. Additionally, in May 2026, 13% of all cashback payments went to just 10 major retail chains. According to the proposal, in high‑risk tax sectors such as food services and small retail trade, state lotteries could be organized among customers who register receipts, with prizes including cars, travel packages, and other large rewards. Calculations suggest that financing such a system would require up to 100 billion soums annually, reducing budget expenses nearly 20‑fold compared to the current cashback system. The proposal does not call for abolishing tax cashback entirely, but rather for modernizing it in line with contemporary digital tax administration requirements.