Tashkent, Uzbekistan (UzDaily.com) — On 11 August, President Shavkat Mirziyoyev reviewed a presentation dedicated to improving the system for combating the shadow economy.

Previously, excessive administrative pressure and undue interference in entrepreneurial activities forced many businessmen to operate in the shadows. In recent years, large-scale work has been carried out to reduce the tax burden and eliminate bureaucratic barriers: the number of tax types has been reduced from 13 to 9, and over a hundred types of licenses and permits have been canceled.

As a result, the share of the shadow economy has decreased from 45–50 percent in 2019 to the current 35 percent. However, this figure still requires further reduction.

The presentation outlined priority tasks in this area. Heads of responsible agencies presented an analysis of factors contributing to the growth of the shadow sector and measures to eliminate them.

Special attention was given to the introduction of modern technological and innovative solutions. For example, automation of payment in Tashkent’s public transport revealed that the actual number of passengers is 30 percent higher than previous data. Digitization of activities in dehkan (farmers’) and bazaars markets ensured a threefold increase in their revenue.

Instructions were given to implement similar systems in sectors such as agriculture, construction, transport, trade, and services — industries with the highest share of the shadow economy. The task was set to review the procedures and timelines for issuing licenses and permits, minimize human involvement, and fully transfer these processes to a digital format. Special attention was paid to eradicating factors that create conditions for corruption in the most problematic areas for entrepreneurs: tax, banking, customs, utilities, and certification sectors.

The development of electronic payments creates conveniences for the population and businesses and serves as an effective tool to reduce the shadow sector. Accordingly, it was planned to stimulate cashless payments and expand the number of payment system operators.

The head of state emphasized that merely tightening control will not eliminate the shadow economy — it is also necessary to raise tax culture among citizens and entrepreneurs and support those who conduct honest business.

The task was set to apply an individual approach to each industry, creating conditions where transparent and lawful entrepreneurship becomes profitable. Based on this, instructions were given to improve and digitize tax administration, create additional incentives for business, and enhance labor relations.

It was especially noted that tax culture should become a matter for the entire society. The honesty inherent in our people ultimately ensures welfare and prosperity in all areas of life. Active promotion and widespread affirmation of these values among the population were recognized as one of the most important tasks.