Entrepreneurs participating in Uzbekistan public procurement market are widely underreporting employee numbers and salaries, Chairperson of the Chamber of Commerce and Industry Davron Vahobov stressed on February 18 in Tashkent.
According to Vahobov, public procurement represents a major market with an annual turnover of UZS 307 trillion ($24bn). While the state has created broad opportunities for entrepreneurs to participate and earn income, a significant number of companies are attempting to minimize tax obligations by declaring fewer employees and lower salaries than actually paid.
Vahobov said that 35% of businesses involved in state tenders report paying monthly wages of just UZS 1mn ($79), while 26% indicate salaries of UZS 2.6mn ($205). In addition, 47% of companies officially list only two employees, raising concerns about tax compliance and transparency.
Vahobov questioned the credibility of such figures, particularly in sectors providing professional services, product delivery and training.
“In companies of this scale, can an accountant really work for UZS 2.6mn? Can complex services be delivered by just two employees?” he asked, urging businesses to operate transparently.
The Chamber head emphasized that strict compliance requirements apply not only to state-owned enterprises but also to private businesses involved in public procurement. He proposed introducing a classification system that would categorize companies as “red,” “yellow,” or “green” based on salary levels, suggesting that firms paying at least UZS 8–9mn ($657–739) per month could be assessed under separate criteria.
More than 4mn citizens were reported to work in Uzbekistan’s informal economy in September 2025 despite a reduction in income tax rates over the past decade, underscoring the government’s push to formalize employment and improve compliance in state-funded markets.
The remarks come amid broader efforts to reform public procurement. Earlier reports noted that Uzbekistan has introduced price preferences for domestic goods and services, established a new public procurement agency, and launched electronic reliability scoring and professional development measures for participants.
Under a recent presidential decree, authorities outlined reforms to its public procurement system, aiming to increase the share of competitive tenders to 80% by 2030, expand the use of domestic products, and strengthen transparency through digital and AI-based oversight.
