Starting from 2027, a new taxation system focused on water resource usage will be implemented in Uzbekistan. This innovation will significantly impact those owners who do not take care of modernizing their accounting and water-saving systems, as their tax rate will double.
Particular attention within the reform will be given to industries with high water consumption levels. For instance, farmers engaged in rice cultivation and fish farming will be required to install "smart" sensors at the water intake and discharge points. This digital control will help monitor actual consumption, and ignoring this requirement will lead to a doubling of tax payments.
Government authorities plan to apply a differentiated approach that takes into account the characteristics of each region. Farmers in areas experiencing water shortages will be able to expect more active support: the implementation of water-saving technologies will be encouraged by increasing subsidies. Conversely, in regions with sufficient water supply, the lack of modern irrigation technologies will be grounds for raising the tax rate.
