"Rent in an Envelope." Khashimov told the president about shadow payments by businesses. Video

"Rent in an Envelope": Khashimov Explains to the President the Problem of Under-the-table Payments in Business. Video

Uzbekistan, Tashkent – Podrobno.uz News Agency.

Zafar Khashimov, founder of the Korzinka hypermarket chain, raised the issue of the difficulties entrepreneurs face when renting premises during an open dialogue with President Shavkat Mirziyoyev on August 18 in the Khorezm region. He noted that businesses continue to pay partial rent "in an envelope," despite the fact that officially registering these expenses may be more cost-effective.

Khashimov pointed out the problem of dividing rent into "white" and "black" parts, where only a portion of the amount is fixed in the contract, while the remainder is paid to the landlord in cash.

"I want to tell entrepreneurs that we must stop this, because it's not really tax evasion. If we officially register the cash we pay as expenses, it will reduce our tax base, and it's actually profitable," the businessman emphasized.

According to Khashimov, many entrepreneurs continue to use this scheme due to ignorance of the benefits of officially registering all rental expenses. He proposed organizing awareness-raising campaigns among business representatives.

The entrepreneur also pointed out that the problem isn't limited to payments. Certain risks for businesses arise from the terms of lease agreements.

Khashimov explained that landlords often enter into short-term contracts with entrepreneurs. However, once a business begins to thrive, rent can be unreasonably increased.

This situation, he said, makes long-term planning virtually impossible: the entrepreneur invests in the development of the property but has no guarantee that they will be able to continue using it under the same terms.

"There are currently major problems in this area, and I think the time has come to address these issues legally. For example, under pressure from landlords, leases are often short-term. The business plan and prospects are long-term, but the contract is short-term," Khashimov explained.

According to the entrepreneur, more stable and transparent lease rules must be created that will allow businesses to plan for years to come, rather than being dependent on constant landlord revisions.

It was previously reported that AKFA Holding CEO Jahongir Artykhodjaev, at a meeting with the president, announced his willingness to hire 10,000 compatriots abroad who wish to return home. This proposal came amid the tragedy in Tatarstan, where eight Uzbek citizens were killed in a Ukrainian drone attack on Nizhnekamsk on August 10.