On August 11, Uzbekistan President Shavkat Mirziyoyev listened to proposals for combating the shadow economy.
It was noted that in the past, high administrative pressure and excessive interference in business led many entrepreneurs to fear operating openly. In recent years, large-scale efforts have been undertaken to reduce the tax burden and eliminate bureaucratic barriers: the number of types of taxes has been reduced from 13 to 9, and more than 100 types of licenses and permits have been abolished.
As a result, the share of the shadow economy has decreased from 45-50 percent in 2019 to the current 35 percent. However, this share still needs to be reduced further.
During the presentation, priority tasks in this area were discussed. Responsible officials presented information on factors contributing to the growth of the shadow economy and measures to eliminate them.
It was noted that the most effective approach is the introduction of modern technological and innovative solutions. For example, the transition of Tashkent’s public transport payment system to a fully automated mode revealed that the actual number of passengers was 30 percent higher than previously recorded.
Instructions were given to implement digitalization systems in agriculture, construction, transport, trade, and services – the sectors with the largest share of the shadow economy. A task was set to review the procedures and timelines for issuing licenses and permits, minimize human involvement, and fully transfer these processes to a digital format. Particular emphasis was placed on the need to eliminate factors that create conditions for corruption in the areas most frequently encountered by entrepreneurs: taxation, banking, customs, utilities, and certification.
The president noted that strengthening control alone will not curb the shadow economy – it is necessary to raise tax awareness among the population and entrepreneurs and to encourage those who operate honestly.
