Uzbekistan's Institute for Fiscal Research has proposed introducing a flat excise duty rate on vodka, cognac and other spirits from 2027 as part of measures linked to the country's World Trade Organization (WTO) commitments.
The institute has proposed setting a uniform excise duty of 70,000 sum (around $5.50) per litre for both domestically produced and imported spirits, Uzbek media reports.
Under the current system, domestically produced spirits are taxed at 63,000 sum per litre, while imported products are subject to a 70,000-sum excise duty.
The proposal also calls for increasing excise duties on ethyl alcohol from 15,000 sum to 25,000 sum per litre, while excise duties on fortified and natural wines, as well as beer, would rise by 5 per cent.
To support local producers, the institute has proposed allowing domestic manufacturers to receive an excise credit on raw alcohol, reducing the effective tax burden to 45,000 sum per litre.
Additional measures include duty-free imports of equipment, preferential loans for producers and the publication of excise duty rates three years in advance to improve business planning.
According to the Institute for Fiscal Research, the proposed changes would generate an additional 62.1 billion sum (around $4.9 million) in budget revenue.
By Sabina Mammadli
