Photo: the Official Channel of the Press Secretary to the President of the Republic of Uzbekistan

BAKU, Azerbaijan, August 18. Uzbekistan’s tax burden has fallen from 13.4% to 12% over the past three years, while the share of the shadow economy has declined from 50% to 26% over the past decade.

This was announced in a statement published by the Press Secretary of the President of Uzbekistan following an open dialogue attended by the President with representatives of the country’s business community in the Khorezm Region.

According to the information, the measure is part of the government’s fifth priority — significantly reducing administrative pressure on businesses.

“The economy should be brought out of the shadow not through inspections, but by guiding entrepreneurs and teaching them to operate correctly,” Mirziyoyev said.

The president said an analysis of 5,000 businesses found that more than half had undergone two or three tax inspections in a single year, while another 21% had been inspected four or more times.

Businesses also face repeated inspections from fire safety, construction, sanitary, quarantine and energy authorities, adding to the administrative burden.

“We need to understand one thing: where there is no peace of mind, there can be neither freedom nor development or the desire to innovate,” Mirziyoyev said.

Under the new measures, small businesses will receive a three-year moratorium on any inspections that are not related to risks to human health or the interests of other entrepreneurs.

The government will also introduce greater flexibility for medium-sized and large businesses. Companies that voluntarily undergo preventive audits will have the results recognized by tax authorities.

Businesses that correct identified deficiencies following such audits will not face fines, while repeat inspections within the same year will only be permitted with the approval of the Business Ombudsman.

The reforms are intended to shift the relationship between businesses and regulators away from repeated inspections and toward preventive compliance, while providing entrepreneurs with greater certainty to invest, expand operations and introduce new products and technologies.