Under the new framework, 100% of land taxes, property taxes, and turnover taxes, along with at least 50% of income taxes, will remain in the budgets of the districts and cities where they are collected. This initiative is expected to increase local revenues by 9.4 trillion UZS, or 47%, compared to current levels.

President Shavkat Mirziyoyev, speaking at the first session of the newly formed Senate, emphasized the importance of local councils’ active involvement in managing these funds.

For the first time in Uzbekistan, local councils have taken on a greater role by approving the appointment of district and city leaders based on their proposed development programs. The President urged deputies to ensure active oversight of these programs, noting that the public expects local councils to lead efforts in addressing community issues.

“These reforms will fundamentally enhance the ability of districts and cities to independently resolve local problems,” Mirziyoyev stated. He also called on councils to propose well-grounded initiatives that address pressing challenges using the additional resources.

The Senate will play a key role in supporting local councils, conducting systematic analysis of their activities, and providing guidance to improve their efficiency in financial and developmental matters.