MECHANISM OF OPERATION OF LOCAL TAXES AND FEES IN THE REPUBLIC OF UZBEKISTAN

Resumen

This paper examines the mechanism of operation of local taxes and fees in the Republic of Uzbekistan, focusing on their economic significance, regulatory foundations, and administrative structure. It provides a comprehensive analysis of how local taxation contributes to municipal finance, public service delivery, and regional development. The study evaluates the classification of local taxes, current collection practices, taxpayer compliance behavior, and the challenges faced by local authorities in ensuring stable revenue flows. Special attention is given to the role of digitalization, institutional capacity, and governance reforms in enhancing the efficiency and transparency of local tax administration. By comparing Uzbekistan’s experience with international practices, the research identifies key areas for improvement, including automation of tax processes, risk-based monitoring, and public engagement mechanisms. The findings offer policy recommendations aimed at strengthening local fiscal autonomy, ensuring fair distribution of tax burdens, and promoting sustainable municipal development.