Uzbekistan Cuts Shadow Economy to 35%

President Shavkat Mirziyoyev on August 11 reviewed plans to strengthen Uzbekistan’s fight against the shadow economy.
In recent years, the government has cut taxes, removed over 100 types of licences and permits, and reduced the number of taxes from 13 to 9. As a result, the shadow economy’s share has fallen from 45–50% in 2019 to 35% today, but further reduction is needed.
Officials highlighted key drivers of the shadow economy and measures to address them. Digital and innovative solutions were identified as the most effective tools. For example, automating Tashkent’s public transport payment system revealed passenger numbers 30% higher than previous estimates. Digitalisation of farmers’ and commodity markets has tripled revenues in some cases.
The president ordered similar systems to be introduced in agriculture, construction, transport, trade and services — sectors with the largest informal share. Licensing and permitting procedures will be revised, human involvement reduced and processes moved fully online. Corruption risks in tax, banking, customs, utilities and certification services will be tackled.
Expanding electronic payments will make life easier for citizens and businesses while curbing informal activity. Authorities will encourage cashless transactions and increase the number of payment providers.
Mirziyoyev stressed that tighter control alone will not work — building a strong tax culture is essential. Honest businesses must be rewarded, and each sector should have tailored measures that make legal operations more profitable. Plans include improving tax administration, offering new incentives and enhancing labour relations.
Promoting honesty, a long-valued national trait, will ultimately bring prosperity across all sectors, the president noted.
Kursiv also reports that Uzbekistan has amended the procedure for forming and maintaining the register of importers of certain goods from international brands.