18/11/2021 - 14:59 3603

On November 16 of this year, as part of the World Bank's mission to support the implementation of the project "Modernization of the real estate registration and cadastre system in the Republic of Uzbekistan", the Ministry of Finance jointly with the World Bank held a round table on accounting, registration and valuation of real estate objects, as well as land relations reform.

The round table was attended by the global leader in land and geospatial aspects of the World Bank, Wael Zakut, the World Bank team on land and geospatial issues, international experts, representatives of the Ministry of Finance, the Ministry of Economic Development and Poverty Reduction, the Ministry of Agriculture, the State Tax Committee, the Cadastre Agency under the State Tax Committee.

The Ministry of Finance shared with the participants of the round table the preliminary results of a test mass assessment of real estate in the "pilot" Mirzo-Ulugbek district of Tashkent city. 

 The test mass assessment of 83,108 real estate objects was carried out by a comparative approach based on market information. 

 According to the previously received information, the difference between the current and proposed cadastral value of apartments is 5.3 times on average in the district, and 4.2 times for individual residential buildings.

It was noted that with the current methodology, the cost of 1 sq. m of an apartment located in the Darkhan district and on the TTZ array have almost the same price (1.2-1.3 million soums), but when using a comparative approach, the cost of 1 sq. m was 9.1 million soums and 5.4 million soums, respectively.

 The participants drew attention to the fact that in practice individual residential buildings are implemented as a single object (land plot and house), and the new approach uses the method of their evaluation as a single object.

Attention was drawn to the fact that the purpose of the reform is to create a new fair system of taxation of real estate through the use of cadastral value as the taxable base, as close as possible to the market value. At the same time, when switching to a new cadastral value, it is not planned to ensure an increase in tax revenues, that is, the overall increase in revenues will be offset by the size of the tax rate, but with a fair redistribution of taxes.

The World Bank experts noted that taxation based on market value is one of the elements of fair taxation of real estate objects, which is applied in many countries.

 In addition, World Bank experts also shared international best practices on land relations and land management.

The participants of the round table exchanged views on the best practices for determining the value of real estate objects, further improving the valuation of land and real estate.

Information Service of the

Ministry of Economic Development and Poverty Reduction