Uzbekistan to introduce three-year moratorium on inspections of small businesses
Uzbekistan will introduce a three-year moratorium on inspections of small businesses, except in cases involving risks to public health or the interests of other entrepreneurs. Repeat inspections of medium-sized and large businesses within one year will require approval from the business ombudsman.
Uzbekistan is set to implement a three-year suspension of inspections for small businesses, with exceptions for situations posing risks to public health or the interests of other entrepreneurs. For medium and large businesses, any subsequent inspections within a year will necessitate approval from the business ombudsman.
President Shavkat Mirziyoyev unveiled these measures on August 18 during an open dialogue with entrepreneurs in the Khorezm region. His announcement detailed strategies aimed at alleviating administrative burdens on businesses.
Mirziyoyev highlighted that Uzbekistan's tax burden has decreased from 13.4% to 12% over the past three years, while the shadow economy's share has fallen from 50% to 26% in the last decade.
"Extracting the economy from the 'shadow' should not be achieved through inspections, but by educating entrepreneurs on proper operational procedures and assisting them in their implementation," Mirziyoyev stated.
An analysis of 5,000 businesses revealed that over half had undergone tax inspections two or three times annually, with an additional 21% experiencing four inspections.
Businesses also contend with recurring inspections from fire safety, construction, sanitary, quarantine, and energy authorities.
"We must grasp one fundamental truth: where there is no peace of mind, there will be no freedom, no development, and no drive to innovate," the president remarked.
Mirziyoyev declared a three-year moratorium on inspections for small businesses. This moratorium will not apply to inspections concerning public health risks or the interests of other entrepreneurs.
Inspections related to public health risks or the interests of other businesses will continue.
The government intends to introduce a voluntary preventive audit system for medium and large businesses.
Under this new framework, if an entrepreneur conducts a voluntary audit of their business, tax authorities will accept the audit's findings.
Should violations be identified and subsequently rectified, the entrepreneur will not incur a fine.
Furthermore, any repeat inspection of a business within a single year will require authorization from the business ombudsman.
Uzbekistan has also imposed a moratorium on introducing any new obligations for small businesses from July 1, 2025, until January 1, 2028. Additionally, the "first opportunity" principle is being introduced, which will exempt entrepreneurs from penalties for a first violation during their initial year of operation.