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In recent years, Uzbekistan has adopted more than 3 thousand normative acts aimed at comprehensive support for business

In recent years, Uzbekistan has adopted more than 3 thousand normative acts aimed at comprehensive support for business

Business rights are a priority of the New Uzbekistan



Since 2017, Uzbekistan has put forward cardinal, unexpected and favorable changes for entrepreneurs. The peculiarity of these changes is that they were aimed at reducing the control functions of the state and opening the way to the free conduct of business. All barriers that hindered entrepreneurs at that time were gradually eliminated.

Liberalization of punishment against entrepreneurs, elimination of possibilities of unjustified interference in their activities, strengthening of close diplomatic ties with foreign countries, simplification of export-import procedures - all this gave a powerful impetus to the development of business environment and motivated entrepreneurs to develop and actively expand their business without obstacles.

In particular, all types of unscheduled inspections and counter-inspections of the activities of business entities, including criminal cases, were canceled. A mechanism of putting forward a moratorium on inspections conducted in the activities of entrepreneurs was introduced, which is actively used to this day.

The measure of criminal punishment in the form of deprivation of the right to carry out entrepreneurial activities was abolished.

Since 2017, the Business Ombudsman, created on the initiative of the head of state himself, has been functioning effectively. Reporting to the President, it makes proposals to improve the business environment in the country and remove various obstacles to the development of entrepreneurship.

Uzbekistan is not resting on its laurels. The country has set itself big goals - to bring the share of the private sector in GDP to 80% and the share of the private sector in exports to 60% by 2027.



The president's dialog with entrepreneurs is the key to solving many problems



It is important for every entrepreneur to be listened to in case of difficulties or obstacles in his/her activity. This is especially important if the problem requires the intervention of government officials.

Obviously, in the conditions of economic development of the state there are problems that create difficulties for business. They require prompt intervention from the highest authorities in order to prevent stagnation in the development of this or that industry, as well as to give an impetus for further development.

Such a peculiar impetus was the dialog of entrepreneurs with the President, which is held annually, and entrepreneurs have the opportunity to communicate directly with the head of state.

The opportunity to be heard is given to every entrepreneur in every region of the country through meetings. After analysis and generalization, the most relevant and justified proposals are submitted to the head of state for appropriate decisions. In addition, the proposals and complaints of hundreds of entrepreneurs are listened to on a day of open dialog.

Over the past three years, more than 33 thousand appeals and proposals were received from entrepreneurs during the open dialogs. As a result of the dialogs, more than 150 initiatives were put forward to remove obstacles in the development of entrepreneurship, as well as its further development.

In particular, if we analyze the initiatives put forward after the 2021 Dialogue, the reforms were aimed at mitigating the effects of the pandemic, extending tax and customs exemptions and granting deferral of taxes and mandatory payments.

The 2022 Dialogue stood out for the support of business representatives on various fronts, starting with tax reforms such as reducing VAT percentages to 12 percent, shortening the VAT refund period to 7 days, and introducing a flat tax rate of 4 percent instead of the current sales tax ranging from 4 percent to 25 percent.

In addition, the mechanisms for ensuring the rights of entrepreneurs have been expanded by introducing a procedure for canceling the decision to allocate land plots or property only in court.

As a result of the dialog, another problem that worried entrepreneurs was eliminated, concerning the application of higher tax rates due to the non-use of an empty building or land plot. This mechanism was not only canceled, but also debts of entrepreneurs in the amount of 2 trillion soums formed as a result of payment of taxes at the increased rate were written off.

Last year, as a result of the dialog, the mechanisms of financing entrepreneurship were radically revised, the Business Development Bank was established, and tax reforms aimed at protecting the rights of entrepreneurs were introduced.

It has become a tradition for entrepreneurs to look forward to the date "August 20 - Entrepreneurs' Day" every year. It is on the eve of this day that new initiatives to support business are announced in the course of dialog.
Digitalization of business protection as a guarantee to ensure unjustified interference in the activities of entrepreneurs



One of the topics of most concern to entrepreneurs is the topic of inspections. In this area, it is important to ensure the protection of entrepreneurs.

Digital monitoring of inspections conducted in the activities of entrepreneurs by state bodies is carried out by the Business Ombudsman.

The information system "Unified State Control" allows registering inspections carried out in the activities of entrepreneurs, their results, as well as filing complaints in case of violations by the inspecting authorities.

State bodies are prohibited from conducting inspections without registering them in this system. Otherwise, this will serve as grounds for administrative liability.

In order to ensure the transparency of inspections and the rights of business entities, the new system "Unified State Control" provides full access for business entities as well.

Thus, in the new system "Unified State Control" a number of functions have been added, such as the Electronic Book of Registration of Inspections, which provides full oversight of inspections by the Authorized Body.

In order to combat corruption and illegal inspections in the system "Unified State Control" was made an electronic database of all officials with the right to conduct inspections This in turn eliminates the possibility of falsification of data of the certificate with the right to conduct inspections. Entrepreneurs can check the data of the special license of inspectors and in case of non-compliance with the system have the right not to allow them on their territory.

Moreover, registers of state control functions and mandatory requirements have been compiled for business entities, which provides an opportunity to familiarize with the control functions of state inspections and mandatory requirements in relation to them.

As a result of the introduction of the "Unified State Control" system, it has become much easier for the Authorized Body to identify facts of offenses in the state control.



Strategy "Uzbekistan - 2030" - prospects for business development in the future



Uzbekistan does not stop at what has been achieved. Rapid steps to further support the business sphere are also enshrined in the Strategy "Uzbekistan - 2030".

Efficient use of local raw material base and development of industry based on advanced technologies, consistent transfer of monopolistic spheres to market principles, increasing the share of private sector in the economy, creating the most favorable conditions for free activity of entrepreneurs are still a hot topic.

In addition, full digitalization and simplification of the tax system is planned, as well as the creation of equal opportunities for all entrepreneurs to make the official sector preferable and more profitable than illegal activities.

For this purpose, a simplified and compact legislative system will be created, convenient for the population and business entities.



Dilmurod Kasimov,

authorized to protect the rights and legitimate interests

business entities

📅 22.06.2024

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