Uzbekistan to introduce three-year moratorium on small business inspections

Uzbekistan is introducing a three-year moratorium on inspections for small businesses, a move aimed at easing administrative burdens and fostering growth. President Shavkat Mirziyoyev announced the policy on August 18 during an open dialogue with entrepreneurs in the Khorezm region.

The moratorium will exempt inspections related to public health risks or the interests of other entrepreneurs. For medium and large businesses, a voluntary preventive audit system will be implemented. If entrepreneurs conduct these audits and correct any identified violations, they will not face fines. Additionally, repeat inspections of any business within a year will now require approval from the business ombudsman.

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Bringing the economy out of the 'shadow' should not be done through inspections, but by explaining to entrepreneurs how to operate properly and helping them do so.

Mirziyoyev highlighted that Uzbekistan's tax burden has decreased from 13.4% to 12% over the past three years. He also noted a significant decline in the shadow economy, from 50% to 26% in the last decade. "Bringing the economy out of the 'shadow' should not be done through inspections, but by explaining to entrepreneurs how to operate properly and helping them do so," the president stated.

An analysis of 5,000 businesses revealed that over half faced two or three tax inspections annually, with 21% inspected four times. Businesses also contended with repeated checks from fire safety, construction, sanitary, quarantine, and energy inspectors. "We need to understand one thing: where there is no peace of mind, there will be neither freedom, nor development, nor the desire to innovate," Mirziyoyev added.

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We need to understand one thing: where there is no peace of mind, there will be neither freedom, nor development, nor the desire to innovate.