Economics

In Uzbekistan, plans are being made to abandon cash payments on suburban trains and intercity buses

The Ministry of Transport has proposed a phased transition of suburban trains, suburban buses, and intercity buses to cashless payments. It is planned to make electronic tickets at least 20 percent cheaper from 2027, and to completely phase out cash transactions on these routes from 2030.

Phasing out cash on commuter trains and intercity buses planned in Uzbekistan

The Ministry of Transport of Uzbekistan has prepared a draft presidential decree providing for a phased transition to cashless payments in passenger transport. The document approving the comprehensive strategy for the development of domestic passenger transport through 2030 has been placed for public discussion.

According to the draft, starting from January 1, 2030, it is proposed to completely phase out cash fare payments on suburban passenger trains, as well as suburban and intercity buses. Payments will have to be made exclusively in cashless form.

The program of measures notes that currently about 70 percent of passengers on these routes pay their fares in cash. By 2030, it is planned to reduce this figure to zero and switch 100 percent to electronic payments.

To encourage cashless payments, it is proposed to temporarily reduce fares for passengers purchasing electronic tickets.

According to the main text of the project, from January 1, 2027, to December 31, 2029, a discount of at least 20 percent should be provided when purchasing an electronic ticket on suburban trains, suburban, and intercity buses.

To implement the new procedure, the Ministry of Transport, together with the Ministry of Economy and Finance and the company "O'zbekiston temir yo'llari", is tasked with developing tariff rules, settlement procedures, and mechanisms to compensate carriers for the discounts.

The objective of the initiative is to encourage the use of electronic tickets, establish transparent accounting for passenger transportation, and reduce the share of the shadow economy in the transport sector.

Notably, the program of measures states that the introduction of discounts will not require additional funding. At the same time, although the document provides for the development of a compensation mechanism, it is not disclosed from which specific funds the shortfall in revenue for carriers will be covered.

The draft also provides an additional benefit for long-distance train passengers.

It is proposed to allow citizens who purchased an electronic ticket for such a train to use suburban trains, i.e., commuter electric trains, in the relevant area free of charge for 12 hours before the departure of the main train and for 12 hours after arriving at the destination.

The Ministry of Transport and "O'zbekiston temir yo'llari" must develop and implement the procedure for granting this benefit by September 1, 2027.

This measure is expected to serve to increase the occupancy of suburban trains and facilitate transfers between railway lines.

The practice of accepting cash on city buses in the city of Tashkent was stopped starting from January 1, 2025.

Instead of paying the driver, passengers were given the opportunity to purchase one-time QR-code tickets via bank and ATTO transport cards, mobile applications, or information kiosks.

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