It will also enhance their initiative and role in implementing reforms and changes.
On December 20 of this year, the president signed a decree "On measures for the introduction of a new system to ensure high economic growth and employment in the regions and to increase the role and responsibility of local khokimiyats."
Target indicators for economic growth, reduction of unemployment and poverty at the national and regional levels have been established for 2025.
Local government authorities will be granted new financial opportunities and powers. Starting next year, the budgets of districts (cities) will receive the full amount of turnover tax, property tax on legal entities, land tax on legal entities, income from the rental of state assets, and at least 50% of personal income tax.
Additionally, 90% of the proceeds from the sale of shares (stakes) owned by local authorities will be distributed among the budgets of Karakalpakstan, regions, Tashkent, and the district (city) where the asset is located, in equal shares.
From 2025, the Supreme Council of Karakalpakstan and the councils of people's deputies of the regions and Tashkent will be granted the right to establish fixed tax rates for individual entrepreneurs. These rates will be determined within the minimum and maximum personal income tax rates, taking into account the level of economic development of districts and cities.
They will also be able to apply a coefficient of increase up to two times the minimum rental value per square meter, which is used for taxation purposes. In Tashkent, such a coefficient may be applied by zones, similar to the land tax.
The councils of people's deputies of districts and cities will have the right to reduce or increase the rates of tax for the use of water resources. A coefficient from 0.7 to 1.5 may be applied for this purpose.
Moreover, they will be able to establish an increase coefficient of up to 1.3 on the fixed tax rates for the extraction of non-metallic construction materials.