Abstract
1. Research Objectives: This study aims to analyze the role of Value Added Tax (VAT) in the modern economy, focusing on its contribution to fiscal stability, economic growth, and consumption regulation, particularly in the context of ongoing tax reforms in Uzbekistan. 2. Design/Methodology/Approach: The research is based on a mixed-method approach combining quantitative analysis of VAT revenue data for the period 2020–2024 and qualitative institutional analysis of tax policies. Trend analysis and comparative methods are applied to evaluate VAT performance. 3. Research Findings: The findings indicate that VAT is one of the most significant sources of government revenue, with its share increasing steadily over time. VAT also contributes to improving tax compliance through its self-enforcing mechanism and supports economic growth by maintaining stable fiscal flows. 4. Theoretical Contributions/Originality: The study provides an integrated perspective by combining fiscal theory, institutional analysis, and empirical evidence to evaluate VAT effectiveness in a transition economy. 5. Implications for Practitioners/Policy: The results suggest that strengthening VAT administration, enhancing digital tax systems, and improving refund mechanisms can significantly increase efficiency and reduce the shadow economy. 6. Limitations/Research Implications: The study is limited by the lack of detailed sectoral data and suggests further econometric analysis for deeper investigation.