Proposals for reducing the shadow economy reviewed

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. The digitalization of dehkan and commodity markets has contributed to up to a threefold increase in their revenue.

Instructions were given to implement similar 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 development of electronic payments creates convenience for both the public and businesses, as well as serving as an effective tool for reducing the shadow economy. In this regard, it is essential to promote cashless transactions and increase the number of payment system operators.

The Head of State 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.

The task was set to apply an individual approach for each sector, creating conditions for entrepreneurs in which conducting open and lawful business would be advantageous. Based on this, instructions were given to improve and digitalize tax administration, provide additional incentives for entrepreneurship, and enhance labor relations.

It was emphasized that tax culture should become a matter for the entire society. Honesty, traditionally valued by our people, ultimately brings prosperity and well-being to all spheres. At the meeting, it was noted that it is essential to actively promote and firmly establish these ideas among the population.