In Uzbekistan, governors will be granted new powers.
The Presidential Decree (PD No. 223, dated December 20, 2024) "On measures to create a new system for ensuring high rates of economic growth and employment in the regions and enhancing the role and responsibility of local self-government bodies in this regard" has been adopted.
According to the Decree, local government authorities are granted the following financial opportunities and powers:
- from January 1, 2025 the complete transfer of the sales tax, corporate property tax, land tax for legal entities, income from leasing state property, and at least 50% of personal income tax revenues to district (city) budgets;
- 90% of the revenue from the sale of shares (equity), owned by local self-government bodies, will be distributed equally to the republican budget of Karakalpakstan, the regional budget of the regions, the budget of Tashkent, and the budget of the district (city) where the facility is located.
Starting in 2025, it will be allowed:
To the Jokargy Kenes of Karakalpakstan, to the people's deputies of the regional and Tashkent city councils:
- based on the level of economic development of districts (cities), to determine the amount for individual entrepreneurs of fixed personal income tax rates in the region (cities) within the minimum and maximum fixed personal income tax rates;
- for the minimum amounts of the rental value of real estate per 1 sq. m, used for taxation purposes, an increasing coefficient up to 2 times across districts (cities), particularly in Tashkent, when applying this increasing coefficient within the zones of land tax.
To the people's deputies of district (city) councils:
- the application of a reduction or increase coefficient from 0.7 to 1.5 times on the rates of tax for the use of water resources;
- to grant the right to establish a coefficient up to 1.3 times on fixed tax rates for the use of subsoil resources for construction materials.
District (city) governors will be vested with administrative powers in the following areas:
- from March 1, 2025 properties belonging to local government authorities, with an area not exceeding 10,000 square meters, and an estimated value not exceeding 5,000 BRV, which have not been sold within 6 months, with the condition of launching a new project and creating jobs within 2 years:
- direct leasing to entrepreneurs for a period of 10 years and privatization or direct sale at the estimated value to an entrepreneur who has made continuous rental payments for state property for 4 years and fulfilled the lease agreement conditions;
- leasing to local and foreign specialists or organizations training to obtain internationally recognized certificates in foreign languages and qualifications, for a period of 5 years without charging rent in the first year with the condition of extending the term thereafter.
District (city) governors will be endowed with administrative powers in the following areas:
- to create public councils of entrepreneurs in districts (cities) to establish a "permanent communication" system between government authorities and entrepreneurs;
- from January 1, 2025 to appoint and dismiss heads of district (city) departments of ministries and agencies in agreement with the regional offices of responsible ministries and agencies, as well as to take measures to reward or impose disciplinary measures on relevant officials;
- from January 1, 2025, to January 1, 2026 as a legal experiment in districts (cities) to organize the activities of the district (city) administration based on a new approach of "serving the interests of residents and entrepreneurs."