Business rights are a priority of the New Uzbekistan  

In recent years, more than 3 thousand regulations have been adopted aimed at comprehensive support for business in Uzbekistan.

Since 2017, Uzbekistan has made drastic, unexpected and favorable changes for entrepreneurs. The peculiarity of these changes is that they aimed to reduce the state’s control functions and open the way to free business. All the obstacles that hindered entrepreneurs at that time were gradually removed.

Liberalization of penalties against entrepreneurs, elimination of the possibility 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 the business environment and motivation for entrepreneurs to develop and actively expand their business without barriers.

In particular, all types of unscheduled inspections and counter inspections of the activities of business entities, including in criminal cases, were cancelled. A mechanism has been introduced to establish a moratorium on inspections carried out in the activities of entrepreneurs, which is actively used to this day.

Uzbekistan does not stop there. The country has set ambitious goals – to increase the share of the private sector in GDP to 80% and the share of the private sector in exports to 60% by 2027.

Dialogue between the president and entrepreneurs is the key to solving many problems

For every entrepreneur, if difficulties or obstacles arise in their activities, it is important to be listened to. This is especially crucial if the problem requires the intervention of government officials.

Obviously, in the conditions of economic development of the state, problems arise that create difficulties for business. They require prompt intervention from the highest authorities to prevent stagnation in development in a particular industry, as well as to give impetus for further development.

This unique impulse was the dialogue between entrepreneurs and the President, which is held annually, giving entrepreneurs the opportunity to directly communicate with the head of state.

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

Over the past three years, during open dialogues, more than 33 thousand requests and proposals have been received from entrepreneurs. As a result of the dialogues, more than 150 initiatives were put forward aimed at eliminating obstacles to the development of entrepreneurship, as well as its further development.

In particular, if we analyze the initiatives put forward after the dialogue in 2021, the reforms were aimed at mitigating the effects of the pandemic, extending tax and customs benefits and providing deferrals for taxes and mandatory payments.

The 2022 dialogue was highlighted by the support of business representatives in various directions, starting with such tax reforms as reducing the VAT percentage to 12%, reducing the VAT refund period to 7 days, introducing a flat tax rate of 4% instead of the current turnover tax of 4 per cent to 25 per cent.

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

As a result of the dialogue, another problem that worried entrepreneurs was eliminated, regarding the application of increased tax rates due to the non-use of an empty building or land plot. This mechanism was cancelled, and entrepreneurs’ debts in the amount of 2 trillion soums, formed as a result of paying taxes at an increased rate, were written off.