Uzbekistan sets sights on cashless economy, introducing limits on cash deals

As it was previously reported, on February 13, Shavkat Mirziyoyev was briefed on a presentation outlining strategic reforms set to be implemented in the coming years.

A key part of these reforms is the planned reduction of cash usage, including transitioning wholesale transactions for certain goods to cashless payments.

To this end, new regulations for retail and wholesale trade are expected to be established in Uzbekistan. It is proposed to introduce cashless payments for wholesale trading of the following commodities:

- Sugar;
- Automobile tires;
- Construction timber;
- Sheet iron;
- Reinforcement bars;
- Aluminum profiles.

Starting April 1, there is a plan to set the maximum amount for cash transactions at 100 million soums (300 BCUs). Furthermore, plans include the implementation of a procedure for registering goods purchased with cash within the E-aktiv (E-Ombor) system.

Moreover, to improve tax administration, there is a proposal to develop a resolution to expand the use of electronic payment systems. The document will mandate the connection to these systems for:

- Budget organizations providing services to the population;
- Legal entities selling oil and gas products;
- Legal entities renting out property;
- Construction organizations selling housing to individuals (the latter will be obliged to process payments for apartments in a non-cash form).

In December 2023, the Minister of Economy and Finance Jamshid Kuchkarov reported on a draft resolution in the works, aimed at combating the shadow economy. He noted that for some transactions, payments with bank cards are planned to be made mandatory.