State Tax Committee returns UZS 32.3 billion in VAT cashback to businesses in Q1

According to the State Tax Committee, these refunds are part of a broader national strategy to alleviate the tax burden on entrepreneurs and stimulate growth in the hospitality and tourism industries.

As of April 6, the catering sector emerged as the primary beneficiary of the scheme. A total of 587 catering businesses received UZS 25.6 billion, accounting for the vast majority of the total payouts. This surge in refunds follows a policy change introduced on January 1, 2025, which allows catering firms to claim a VAT cashback of up to 40%. To qualify for the full 40% rate, businesses must ensure that at least 60% of their turnover is conducted through cashless payments; otherwise, the cashback rate is set at 20%.

Other sectors have also seen significant reimbursements. Hotels received UZS 1.6 billion across 99 properties, while 15 tour operators were reimbursed UZS 273.1 million. These two sectors became eligible for a 20% VAT cashback starting from October 1, 2025. In the industrial and agricultural spheres, 111 jewelry enterprises received UZS 3.7 billion, and 28 livestock and poultry farms were reimbursed a total of UZS 1.1 billion.

The State Tax Committee emphasized that these measures are intended to formalize the economy by encouraging cashless transactions and providing direct financial liquidity to service-oriented businesses.