As previously reported by Spot, Shavkat Mirziyoyev was presented with proposals aimed at strengthening the legal protection of entrepreneurs.
The Business Ombudsman Dilmurad Kasimov shared in an interview with O’zbekiston 24 about the directive from the head of state to assist businesses that are operating at reduced capacity or have completely halted their activities. Consequently, the situation of 2,342 enterprises was assessed, and 1,879 entities were successfully restored.
This effort led to the creation of 737 jobs, an export volume of $229 million, and tax revenues exceeding 11 billion sums. Additionally, working groups have been established to address investor issues and provide assistance.
Starting from January 1, 2025, only one measure of responsibility will be imposed for a single violation. Specifically, the fine for conducting business without registering as an individual entrepreneur will be abolished.
“There have been cases where a single entrepreneur faced two types of penalties—financial and administrative—for one unlawful act. The new document specifies that an entrepreneur should face only one type of penalty for such an action. For instance, individual entrepreneurs will only receive administrative penalties. Additionally, violations such as labeling infringements and fiscal rule violations, which previously incurred both administrative (37.5 million sums) and financial (2% of quarterly revenue) penalties, will now be subject to only one type of fine—financial,” Kasimov explained.
Furthermore, the draft decree includes measures related to concealing the number of employees. In such cases, a financial penalty (20% of the concealed tax amount) will be applied, while the administrative fine (3.7 million sums) is set to be abolished.
To facilitate dispute resolution, from March 1, 2025, a procedure for partial refunds of state fees will be introduced, applicable if the case in court is resolved through mutual agreement. In this scenario, 70% of the paid fee will be refunded, along with 30% at the appeal or cassation stage.
How Business Inspections Will Be Conducted
In Uzbekistan, a list of authorities empowered to oversee the activities of entrepreneurs and their areas of control is set to be approved.
Inspections not included in this list will be prohibited. All inspections must be registered in the "Unified State Control" information system, with mandatory notification to the Business Ombudsman.
Starting January 1, 2025, inspections will be carried out based on the electronic "Risk Analysis" system, categorizing entrepreneurs into three risk levels:
- low-risk;
- medium-risk;
- high-risk.
Businesses classified as low-risk will not be subject to inspections. For medium-risk entrepreneurs, preventive measures are planned, and inspections will only be conducted if violations are not rectified.
Moreover, regulatory bodies may initiate inspections of high-risk enterprises without conducting an analysis in the electronic system.
Additionally, a KPI rating for government agencies will be established, considering cases of complaints and grievances received against government bodies, as well as instances of illegal inspections and violations of procedures.
Earlier, Spot reported that transferring electrical networks to investors would attract $4 billion for their modernization.