Government targets unused farmland with strict tax hikes and administrative penalties

Uzbekistan has introduced a new legal framework aimed at ensuring the efficient use of agricultural land, specifically targeting the unutilized areas along the edges of fields. According to the newly enacted law, individuals and entities failing to plant appropriate crops in these designated zones will face administrative fines and significantly increased land taxes.

Photo: cotton-council.uz

Amendments made to the Code of Administrative Responsibility stipulate that sub-lessees of agricultural land must comply with requirements to plant "optimal crops" along canals, irrigation networks, and collector-drainage systems within specified timeframes. Failure to adhere to these planting requirements will result in fines ranging from 1 to 3 times the Base Calculating Amount.

The legislation also introduces stringent fiscal measures through amendments to the Tax Code. Under the new system, the Agency for Plant Quarantine and Protection is required to submit electronic data to the state tax authorities by May 1 of each year. This data will identify land plots and owners who have failed to cultivate the required vegetation on field edges.

Based on this information, the land tax rate for the specific portion of the plot left uncultivated will be calculated at triple the standard rate for the current year. This measure is intended to incentivize the full utilization of available land and bolster national agricultural output.

The law is set to officially enter into force three months after its formal publication, giving landholders and tenants a transition period to align their operations with the new requirements.