Uzbekistan has reduced the shadow economy from an estimated 45–50% of GDP in 2019 to about 35% today, but authorities say more needs to be done, according to the Presidential Press Service.
On August 11, President Shavkat Mirziyoyev reviewed proposals to further combat shadow economy focusing on technology-driven solutions, streamlined regulation, and improved tax culture.
Officials noted that past reforms — including reducing the number of taxes from 13 to 9 and canceling over 100 types of licenses and permits — have eased administrative pressure on businesses and encouraged legal operations.
The presentation highlighted the role of advanced technologies in increasing transparency. Fully automated public transport payments in Tashkent, for example, boosted recorded passenger numbers by 30%, while the digitalization of agricultural and commodity markets increased revenues two- to threefold.
Mirziyoyev instructed that similar approaches be applied in agriculture, construction, transport, trade, and services — sectors with a high share of informal activity. He also called for a full review of licensing and permitting processes, with all steps digitized to reduce human involvement and curb corruption risks.
Expanding electronic payments was identified as another priority, both for public convenience and for reducing cash-based transactions. Measures will be introduced to encourage cashless payments and increase the number of payment system operators.
The president stressed that enforcement alone cannot eliminate the shadow economy. Incentives for entrepreneurs to operate transparently, better tax administration, and improved labor relations will be essential.
He added that fostering tax compliance should become a shared societal value, noting that the principles of honesty and lawful business have long been associated with prosperity in Uzbekistan.
In 2024, Uzbekistan’s GDP stood at $115bn, with the shadow economy — where taxes and fines go uncollected — accounting for over $40bn, or about 35% of output.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)