TRANSFORMATION OF TAX INCENTIVES IN THE FREE ECONOMIC ZONES OF THE REPUBLIC OF UZBEKISTAN IN THE CONTEXT OF THE EXPECTED ACCESSION TO THE WORLD TRADE ORGANIZATION

Abstract

This article examines the transformation of tax incentives provided in the Free Economic Zones (FEZs) of the Republic of Uzbekistan in the context of the country’s expected accession to the World Trade Organization (WTO). The study analyzes the current system of tax benefits granted to enterprises operating in FEZs and evaluates their effectiveness in attracting foreign investment, promoting export-oriented production, and stimulating regional economic development. Particular attention is paid to the compatibility of Uzbekistan’s preferential tax regimes with WTO principles and international trade rules, including the requirements related to subsidies and fair competition. The paper explores international experience in regulating tax incentives in special economic zones and highlights the potential challenges and opportunities that may arise during the process of harmonizing national legislation with WTO standards. Based on comparative analysis and economic evaluation, the research proposes recommendations for improving the tax incentive mechanism in Uzbekistan’s FEZs in order to maintain investment attractiveness while ensuring compliance with global trade regulations. The findings of the study contribute to the development of an effective policy framework for balancing economic incentives with international obligations in the process of Uzbekistan’s integration into the global trading system.