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Tashkent, Uzbekistan – An influential Uzbek economic research group has put forth a proposal for the introduction of an excise tax on imported palm oil, citing concerns over public health costs and existing market distortions. The recommendation aims to establish a corrective levy to reflect the true societal impact associated with saturated fat consumption.
Published by the Institute for Fiscal Analyses as part of its comprehensive 2027 tax policy framework, the blueprint suggests applying a specific excise tax rate of $139 per ton to palm oil falling under commodity code 1511. This proposed rate is calculated to be approximately 10% of the commodity's projected import price of $1,388 per ton for 2026. With Uzbekistan's annual palm oil import volumes reaching 12,789 tons, the measure is anticipated to generate an additional 21.7 billion soums for the national budget.
The Institute's economists contend that current trade regulations, which either exempt palm oil from duties or apply zero-rate tariffs, create an artificial price advantage when compared to alternative cooking oils. By correcting this imbalance through targeted fiscal policy, they aim to foster healthier consumer choices and simultaneously alleviate the financial strain on the national healthcare system.
Palm oil has long been a subject of scrutiny by medical and nutritional experts primarily due to its high concentration of saturated fats. These fats are known to elevate the risk of cardiovascular disease and various other noncommunicable ailments. A significant challenge lies in the fact that palm oil is frequently an unadvertised ingredient in processed foods and mass-market baked goods, rendering traditional labelling strategies largely ineffective in guiding consumer decisions.
In response to such information gaps, the World Health Organization (WHO) previously recommended implementing specific unit excise taxes on foods rich in saturated fats. This recommendation was outlined in its 2016 framework titled 'Fiscal policies for diet and the prevention of noncommunicable diseases'. Furthermore, research conducted by the World Bank indicates that health-focused excise taxes offer a dual advantage by both curbing harmful consumption patterns and securing stable revenue streams for public finances.
Economic literature consistently highlights that consumers often underestimate personal dietary risks due to insufficient nutritional awareness, making price signals a crucial tool for corrective action in public health.
Source: Kursiv Media Казахстан