Chinese marketplace Temu faces UZS 46 billion tax bill to resume operations in Uzbekistan

The National Agency for Prospective Projects (NAPP) has clarified the status of the Chinese marketplace Temu in Uzbekistan, stating that the platform must settle significant tax arrears before it can resume normal operations. During a press conference on March 18, Kamronbek Mukhammadiev, head of the e–commerce development and regulation department at NAPP, revealed that the marketplace currently owes approximately UZS 46 billion in taxes.

Foto: Reuters

According to Kursiv Media, the official expressed skepticism regarding the platform's current business model in the country. When asked if the Uzbek economy benefits from a player like Temu under its current operating conditions, Mukhammadiev stated, "Absolutely not."

A history of stalled negotiations

According to NAPP, representatives from Temu, including a delegation led by a Vice-President, have visited the agency six times. During these meetings, officials from various government bodies, including the Tax Committee, provided clear and transparent guidelines on local legislative requirements.

"We explain the same thing to them every time – nothing changes, everything is transparent, and everything is open," Mukhammadiev noted. "We told them clearly and specifically what, when, and how much to pay into the budget of Uzbekistan, providing all supporting documents. They said 'okay' and then disappeared. This happened six times."

Impact of the restrictions

Since the blocking of the platform, the volume of purchases has plummeted by approximately 95%. While a remaining 5% of users continue to bypass restrictions via VPN services and pay using international systems like Visa and Mastercard, they face significant risks.

Mukhammadiev warned that even after payment, many customers are not receiving their orders due to logistical failures. The sharp decline in sales volume has made logistics prohibitively expensive for the company. Furthermore, as users continue to order via VPN, the platform's tax liabilities continue to grow.

Conditions for unblocking

The regulatory challenges began in late 2024 when Uzbekistan introduced new e-commerce rules requiring international platforms to register as legal entities. While Temu has recently registered a legal entity and registered for tax purposes, the blocking remains in effect because the company has failed to pay taxes accumulated during the period prior to its official registration.

The Tax Committee and NAPP are currently in ongoing negotiations with the platform. Mukhammadiev emphasized that Uzbekistan is interested in institutional players who are ready to invest and follow the law.

"The ball is in their court," he said, adding that NAPP remains open to dialogue. However, the marketplace must bring its activities into full compliance with the law to be unblocked. "Everyone is equal and must comply with these conditions."