Uzbekistan's Natural Resources Dominate Government Income Streams
Uzbekistan's Top Tax-Paying Enterprises
State-affiliated energy and mining companies dominate the list of top corporate tax contributors in Uzbekistan, according to data released on January 15 by the national State Tax Committee. In 2024, the government collected approximately 123.3 trillion Uzbek soums (around $9.5 billion) in corporate tax revenue from 949 major taxpayers.
The top 10 tax-generating entities accounted for nearly 57 percent of the revenue collected. The Navoi Mining and Metallurgical Plant, Almalyk Mining and Metallurgical Plant, and uranium producer Navoiyuran led the list, with Uzbekneftegaz, Khududgastaminot, UzGasTrade, and automaker UzAuto Motors ranking fourth, fifth, sixth, and seventh, respectively. Among privately held companies, tobacco concerns UZBAT and Tashkent Tobacco were the top contributors.
These findings, coupled with recent legislative efforts to ban e-cigarettes, may indicate an impetus to combat the adverse health effects of tobacco revenues. The government has been managing a budget deficit, as reported by the Ministry of Economy and Finance. In the first six months of 2024, state expenditures totaled 149.8 trillion soums, with approximately 50 percent allocated to social spending. Revenue from corporate tax increased by over 18 percent during the first half of 2024 compared to the same period the previous year.
Uzbekistan's government continues to push for privatization in various sectors, including the energy and mining industries, to attract foreign investment and improve efficiency. The ongoing process of privatizing state-owned companies, including power plants, reflects a complex economic landscape in which state control remains pertinent. While domestic privatization efforts are progressing, the dominance of state-connected companies in tax payments demonstrates the enduring influence of the state in the nation's economic affairs.
In addition to the ongoing privatization of key energy and mining companies, Uzbekistan is increasing cooperation with foreign entities in the energy sector. Collaborative efforts include discussions with Gazprom Neft for expanding energy supply and digitalization, and a 2 GW wind power project with Masdar. Despite the progression of privatization, the state maintains a significant role in various economic activities. The delicate balance between privatization and state control will continue to shape Uzbekistan's economic development.
In the light of the ongoing privatization of key energy and mining companies, foreign entities might potentially increase their tax contributions in Uzbekistan's finance industry, given the cooperation with Gazprom Neft and Masdar for expanding energy supply and digitalization. However, the dominance of state-connected companies in tax payments highlights the enduring influence of the state in shaping the financial landscape of the Uzbek energy sector.
