Government may cover electricity costs above UZS 300 per kWh for EVs

Under the proposal, starting this year, the state plans to reimburse the part of the electricity price at charging stations that exceeds UZS 300 per kWh. The subsidy mechanism is intended to remain in effect through December 31, 2030. For instance, if the electricity tariff for the relevant consumer category is set at UZS 1,000 per kWh, the state budget will provide a subsidy of UZS 700 per kWh.

According to the explanatory note accompanying the draft, the actual budget expenditures for 2026 – calculated for the eight months following the program's launch in May – are estimated at approximately UZS 164 billion. Projections suggest that annual costs for the state budget will rise to UZS 246 billion for the full year of 2027 and could reach UZS 819 billion by 2030 as the number of electric vehicles in the country increases.

The reimbursement process is designed to be direct and user-friendly for citizens. Payments will be transferred monthly to individuals' bank cards via the "Soliq" mobile application managed by the tax authorities. Importantly, these subsidies will not be included in the total taxable income of individuals. For the current year, the initial funding will be sourced from the surplus revenue of the state budget following the second quarter, while in subsequent years, the necessary funds will be allocated through the annual Law on the State Budget.

In the medium term, these measures are expected to yield significant economic and environmental benefits. By encouraging the use of EV charging infrastructure and increasing energy efficiency in the transport sector, the government aims to reduce the national demand for hydrocarbon fuels and lower carbon emissions. The public discussion regarding the draft project will remain open until May 17.