The impact of tax policy on the development of small and medium enterprises in Uzbekistan

Abstract

Small and medium enterprises (SMEs) play a crucial role in Uzbekistan’s economy, significantly contributing to
GDP and employment. Tax policy remains a key determinant of their development, influencing business formalization,
investment decisions, and overall competitiveness. This study employs a qualitative research approach to examine the
impact of Uzbekistan’s tax policies on SMEs, analyzing regulatory frameworks, tax compliance challenges, and broader
economic implications. The findings indicate that while tax reforms have facilitated business operations, structural
inefficiencies persist, including high compliance costs, abrupt tax regime transitions, and limited awareness of tax
incentives. Given these challenges, the study proposes policy measures to foster a more SME-friendly tax environment,
such as the adoption of progressive tax structures, the digitalization of tax administration, and enhanced fiscal transparency.