OFFICIAL STATEMENT: Regarding the Proposal to Tax Interest Income on Bank Deposits
A proposal by the Institute of Fiscal Studies to tax interest income earned on bank deposits has recently been the subject of extensive discussion in the media and on social media platforms. In this regard, we consider it necessary to clarify the following for the public.
First, the proposal is the outcome of an analytical and scientific study conducted by the Institute's researchers. It was presented during the Fiscal Dialogue event solely as an idea for professional discussion among experts and specialists. It does not constitute an official decision, policy document, or draft law.
Second, the proposal does not imply any amendments to the current legislation at this stage. Amendments to the Tax Code of the Republic of Uzbekistan may only be introduced through the established legislative process, following consideration and approval by the competent state authorities with the participation of the wider public and the expert community. Under the current legislation, interest income from bank deposits held by individuals remain exempt from personal income tax.
Third, the study was prepared on the basis of an analysis of international experience. Its purpose is to provide a scientific assessment of policy options that could contribute to a fairer distribution of income and ensure greater balance and equity among different types of income within the tax system. It should be emphasized that the proposed tax rate corresponds to the rate currently applied to dividend income and would apply only to interest income earned, not to the principal amount of the deposit. Studies of this nature are conducted to examine alternative policy approaches and to assess their potential advantages and disadvantages.
Fourth, the Institute's core mission is to conduct scientific research and facilitate the exchange of ideas. Scientific progress depends on open discussion, diverse perspectives, and constructive debate. Any proposal put forward by the Institute should therefore be regarded not as a final decision, but as a subject for public and professional discussion. We highly value the opinions and comments expressed by the public, experts, and other stakeholders and consider such dialogue to be a healthy and essential part of the policymaking process.
The Institute will continue to conduct its research in accordance with the principles of openness, objectivity, and consideration of the interests of citizens.
