A new approach to assessing tax incentives: nominal indicators and real fiscal impact
The latest analytical article by Abbosbek Juraev, Director of the Institute for Reducing the Share of the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis under the Ministry of Economy and Finance of the Republic of Uzbekistan, is dedicated to the economic essence of tax and customs incentives and modern approaches to their assessment.
The article notes that the declared volume of tax and customs benefits is not always equal to the amount of additional budget revenues that could result from their abolition. In particular, using the example of value-added tax, it is justified that many benefits are actually considered an element of the basic architecture of the tax system, therefore it is incorrect to assess them as direct budget losses.
The analysis examines the structure of tax and customs incentives for 178.2 trillion soums recorded in 2025, the economic content of VAT incentives, the zero rate applied to export operations, financial services, incentives provided to IT Park residents, and practices related to the import of technological equipment in comparison with international experience.
The author notes that when assessing the effectiveness of tax incentives, their impact on the economy is more important than their volume. In particular, criteria such as investment volume, export indicators, job creation, and the impact on economic activity should be key factors in assessing tax expenditures.
The article also emphasizes the need to form a system for assessing tax expenditures in Uzbekistan based on international standards, which will serve to increase the transparency and efficiency of fiscal policy.
