Officials are proposing to stop granting new social tax breaks to businesses and to abolish existing ones entirely from 2030, the Ministry of Economy and Finance said.
According to the ministry's analysis, scrapping the breaks is essential to create a level playing field and fair competition among businesses. However, thousands of companies have had the social tax rate, which is officially 12%, cut to 1% or even zero. This raises questions of fairness and purpose in financing pension insurance, which is why the ministry is proposing that all employers pay social tax at the same rate.
In 2025, 65,000 companies received social tax breaks worth nearly 3.2 trillion soms, the ministry noted.
"Even where a company's costs have fallen, the future pension obligation for its employee remains. That is why we are proposing to stop granting new social tax breaks and to abolish existing ones entirely from 2030," the ministry said in a statement.
Under the proposal, support for businesses would come through state budget subsidies rather than social tax exemptions.
"As a result, employees earning the same salary, say 6 million soms, would be on equal footing when it comes to paying social tax and financing their pension entitlements, regardless of which company they work for," the ministry said.
Social tax revenues go to the Pension Fund. Its income currently falls short of pension payouts, forcing the state to top it up from the budget. Abolishing the tax breaks is expected to boost the fund's revenues and ease the burden on the budget.
It was reported earlier that raising the retirement age is also under consideration. Some economists have said taxes could go up if that change is not implemented.
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