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

Small and medium enterprises (SMEs) play a crucial role in Uzbekistan’s economy, significantly contributing toGDP 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 theimpact of Uzbekistan’s tax policies on SMEs, analyzing regulatory frameworks, tax compliance challenges, and broadereconomic implications. The findings indicate that while tax reforms have facilitated business operations, structuralinefficiencies persist, including high compliance costs, abrupt tax regime transitions, and limited awareness of taxincentives. 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.