Share of hidden economy in Uzbekistan estimated at $32 billion 

At the following session of the UzLiDeP press club, the issues of reducing the hidden economy and supporting entrepreneurs who are officially active were discussed.

On August 18 of this year, President Shavkat Mirziyoyev announced that the share of the hidden economy in the country is about 40 percent.

At the session of the UzLiDeP press club on September 28, the issues of reducing the hidden economy and supporting entrepreneurs who are officially active were discussed.

It was attended by deputies of the Legislative Chamber of Oliy Majlis and Local Councils, ministries and agencies, media representatives, scientists and businessmen.

Eldor Niyozov, head of the Tax Committee, speaking about the share of the hidden economy in the tax system, noted that despite the measures being taken, the share of the hidden economy in the construction sector remains high.

“We don’t see much in the construction sector. The turnover is around 80-90 trillion soums. It has gone so far that even though we have introduced “Transparent Construction”, the amount being hidden is huge. If not, we are making it transparent. But that's why there are cases of invoices that have not been seen, work that has not been done, invoices that are understated, and manually entered. 6-7 percent of the secret economy is in construction,” he said.

The representative of the tax authority said that as a result of the introduction of the marking system and the coverage of many goods, the analysis of the marking system was started.

“Alcohol products account for 6-7 percent of the secret economy. We are working in the direction of three defined areas - construction, agriculture and the movement of marked goods,” Eldor Niyozov said.

According to experts, the share of the hidden economy is 40 percent and is estimated at about $32 billion.

This value is mainly due to the secondary market of real estate and vehicles, wholesale and retail trade, services, tobacco smuggling, illegal goods circulation, agriculture and others.

According to Ulugbek Kosimov, head of the department of the customs committee, the sectors with a high share of the hidden economy in the customs authorities are tobacco and alcohol products, medicines, electrical goods, jewelry, medicine and pharmaceutical products. Also, mobile devices have a high share.

During the press club, the areas where the secret economy exists were analyzed and it was emphasized that they should be dealt with in a specific way.

During the event, many problematic issues were discussed by the participants, and it was emphasized that it is necessary to drastically reduce the share of the hidden economy in relation to GDP, and to take measures in this regard without tolerance.