Improving Mechanisms for Calculating and Collecting Property and Land Taxes From Individuals

Abstract

Property and land taxes are vital sources of regional revenue in Uzbekistan, yet their collection efficiency remains below potential due to outdated systems and incomplete registries. While reforms and digital initiatives have slightly improved tax collection, Uzbekistan’s efficiency still lags behind international benchmarks such as Germany and Kazakhstan, highlighting the need for modernized mechanisms. Previous studies have mainly addressed policy frameworks without offering empirical evaluations of digitalization and valuation reforms' practical impacts on tax revenues and compliance in Uzbekistan. This study aims to analyze the current calculation and collection mechanisms of property and land taxes, assess their deficiencies, and propose improvements based on international best practices. Findings show that digital tax platforms and revised valuation models increased tax collections by 10–15%, particularly in cities like Tashkent and Andijan, but challenges such as informal ownership, outdated cadastres, and low digitalization persist, especially in regions like Qashqadaryo. Using a mixed-methods approach combining qualitative legislative analysis and quantitative revenue data from 2020–2024, the study uniquely integrates international comparisons to tailor recommendations for Uzbekistan’s context. Policy recommendations include implementing digital cadastres, legalizing informal properties, expanding digital tax platforms nationwide, and adopting market-based valuation methods, which could enhance collection rates, reduce administrative costs, and support economic growth.