Tax revenues in Uzbekistan surge as shadow economy shrinks

Tax revenues in Uzbekistan’s regions have increased by more than a quarter since the beginning of the year due to measures aimed at formalizing the shadow economy, the State Tax Committee reported.

Late last week, the committee held a joint meeting with the Department for Combating Economic Crimes under the Prosecutor General’s Office and other agencies that are part of the Commission for Reducing the Shadow Economy. The participants discussed challenges in sectors with a high level of informal activity.

These include construction, trade, tourism, transport, services, healthcare, and recreational areas. The meeting also addressed issues related to the legalization of employment and wages.

In recent years, Uzbekistan has managed to formalize 10–20% of the informal sector across various industries. This was made possible through the introduction of digital solutions – such as electronic invoices (ESF), digital consignment notes, online cash registers, individual taxpayer identification numbers (IKPU), and product labeling – as well as incentive measures like cashback programs involving public participation.

The official turnover of enterprises increased by 42% this year, reaching UZS 737 trillion. Among them, 26,800 companies doubled their turnover to a combined total of UZS 189 trillion, while another 24,300 firms that had no recorded turnover in 2024 carried out transactions worth UZS 93.4 trillion.

The state budget received UZS 158.7 trillion in tax revenues over the first three quarters – UZS 23.8 trillion (18%) more than in the same period last year. In the third quarter alone, regional revenues grew by 30%, and since the beginning of the year – by 27%.

Navoi region recorded the fastest growth in tax payments – 86%. In Fergana region, revenues increased by 39%, while in Tashkent city and Syrdarya region they grew by around one-third.

Corporate income tax revenues rose by more than 1.5 times, and VAT receipts increased by 28%. In the food service sector, VAT grew by 44%, driven by the digitalization of agricultural product purchases and the expansion of tax cashback mechanisms.

Another topic discussed was the legalization of informal employment. A total of 17,100 companies began officially paying “white” wages for the first time, amounting to UZS 1.9 trillion. In 24,000 enterprises, the total wage fund doubled to UZS 8.6 trillion.

Since the beginning of the year, 17,800 companies that previously had no registered employees reported 96,000 workers. The number of employees at 14,500 enterprises more than doubled, reaching 255,000 people.