Real estate tax revenues do not exceed 1 percent of GDP in developing countries. In most countries, this is less than 0,5 percent. Following such a low contribution, there is a growing desire among countries to increase the share of this tax in GDP. The article discusses the reasons for considering real estate tax as a “good” and “bad” tax compared to other types of taxes such as income and consumption taxes. Factors that could lead to inefficiencies and inequalities in real estate taxes were also studied. Various causes and possible effects of low real estate tax rates in developing countries have been studied.All the studied aspects of the real estate tax apply to our developing country, Uzbekistan.