Uzbekistan Grants Tax Exemption for Well Water in Water-Saving Orchards
Starting August 1, 2026, industrial orchards in Uzbekistan that implement modern water-saving technologies will benefit from a preferential tax rate for using well water. The tax for water extracted from wells will be set at a nominal rate of 1 Uzbekistani soum per cubic meter. This preferential rate will be applied for a period of five years. The initiative aims to encourage the adoption of efficient irrigation methods within the agricultural sector. By reducing the financial burden associated with water usage for these technologically advanced farms, the government hopes to promote sustainability and conserve precious water resources. This policy is expected to support the modernization of Uzbekistan's agricultural infrastructure and enhance its resilience to water scarcity.
This policy incentivizes water conservation in Uzbekistan's agricultural sector by offering a significant tax reduction for adopting water-saving technologies. The move acknowledges the growing importance of water resource management in arid and semi-arid regions, particularly in the context of climate change and increasing agricultural demands. By making well water usage more economical for compliant farms, the government aims to accelerate the transition towards more sustainable farming practices. This approach leverages economic instruments to drive technological adoption, potentially improving long-term water security and agricultural productivity, while also aligning with broader goals of modernization and environmental stewardship.
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