It is no coincidence that nearly 14,000 appeals were received during the VI Open Dialogue with Entrepreneurs, with a significant share concerning pressure from regulatory and supervisory authorities. As a fundamental response to these concerns, Presidential Decree No. PF-175, adopted on August 27, 2026, has not merely introduced restrictions on the inspection system. It has fundamentally reshaped the rules governing interaction between government authorities and entrepreneurs.

1. Three-Year Moratorium: Full Protection for Small Businesses

The Decree introduces a strict three-year moratorium on inspections of small business entities. The only exceptions are inspections conducted as part of criminal proceedings, those related to compliance with public health and labor legislation, citizens’ appeals, VAT refunds, and the liquidation of enterprises.

The key innovation is that the moratorium is backed by a clear legal enforcement mechanism: any inspection conducted during the moratorium period will be deemed unlawful, and officials who authorize or carry out such inspections will be held accountable. In addition, the Business Ombudsman will launch the “Effective Oversight” initiative, under which inspection materials from the past three years will be reviewed on site, with measures taken to restore entrepreneurs’ violated rights.

2. Independent Auditors to Replace Routine Inspections

From January 1, 2027, through December 31, 2028, a new legal experiment will be introduced for medium-sized and large businesses. Under this mechanism, a company may voluntarily engage an independent audit organization to verify the proper calculation of taxes and fees. The audit report will be fully recognized by the tax authorities, and no repeat tax audit will be conducted for the period covered by the audit.

If any identified deficiencies are corrected within 30 days, no financial penalties will be imposed. If the audit conclusion proves to be incorrect, responsibility will rest not with the entrepreneur, but with the auditing organization itself.

A repeat inspection within one year will only be possible with the permission of the Business Ombudsman. A new principle has also been introduced regarding penalties: “A Warning for the First Violation.” If an entrepreneur commits a violation for the first time but causes no harm to human health or another person’s property, an immediate fine will not be imposed. Instead, the entrepreneur will be given 10 days to correct the violation.

3. The Burden of Proof Shifts to the State Authority

One of the document’s most significant and groundbreaking provisions is the introduction of the presumption of legality of entrepreneurial activity. This means that, unless proven otherwise, an entrepreneur is presumed to have acted in accordance with the law. The full burden of proving that a violation has occurred, as well as the legality and proportionality of the measure being applied, rests with the relevant government authority.

Any irreconcilable contradictions in legislation, as well as doubts arising from insufficient evidence, will be interpreted in favor of the entrepreneur. If a court orders a government authority to reconsider a decision and sets out its legal position, that position becomes binding on the authority, and the outcome of the reconsideration may not worsen the entrepreneur’s situation.

4. A “Second Chance” — Relief from Tax Debt and Penalties

Until December 31, 2026, a “Second Chance” economic amnesty will apply to small and medium-sized businesses. If the principal amount of tax debt is fully repaid, the penalties accrued on that debt will be written off, and enforcement proceedings will be terminated.

Entrepreneurs who independently correct their tax reporting and pay the additional tax due will also be exempt from penalties, while their scores in the business sustainability rating will not be reduced. The unpaid portion of certain administrative and financial fines imposed before January 1, 2026, will also be written off. The only condition is that no tax debt remains as of January 1, 2027.

Conclusion: How Has the Logic of the System Changed?

Before: Entrepreneurs had to prove their innocence and compliance.
Now: The government authority itself must prove that a violation has occurred.

Before: Even a first violation could result in a fine.
Now: A warning and 10 days to correct the violation are provided.

Before: An inspection could arrive unexpectedly.
Now: Inspections of small businesses are suspended for three years.

Entrepreneurs should remember that these guarantees and benefits do not automatically take effect in practice. They become a strong shield only for those who understand their rights clearly and are able to assert them when necessary.

Leading Inspectors of the Fergana Regional Department for the Protection of the Rights and Legitimate Interests of Business Entities under the President of the Republic of Uzbekistan Murodjon Yusupjonovich Kodiraliyev, Sultonkhan Abduganiyevich Mamatov