Business Ombudsman proposes overhaul of digital marking fines to prevent bankruptcies

Under the existing regulations, fines are tied directly to a company's total turnover rather than the specific scale of the violation. Urunov pointed out that a mistake at a single retail outlet could result in a fine ranging from 2% to 20% of the entire network's quarterly revenue. He noted that while an initial violation incurs a 2% penalty, a repeat offense triggers a 20% fine, which in many cases equates to the total liquidation or bankruptcy of a stable business due to isolated errors.

The Tax Committee maintained a firmer stance during the discussions, expressing concern that excessive leniency could encourage systemic abuse. Officials cited instances where large enterprises intentionally bypassed marking requirements to gain an unfair competitive advantage. The committee argued that if fines are too low, companies might view them merely as a "cost of doing business" and continue to operate outside the law.

Adding a layer of legal complexity, the Deputy Attorney General, Dilmurod Kasimov, addressed a statement by tax authorities suggesting that sanctions might not be enforced during the initial phase of new requirements starting April 1. Kasimov warned that failing to act on documented violations could be legally interpreted as concealing offenses, suggesting that enforcement agencies are under pressure to maintain strict oversight.

Deputy Prime Minister Jamshid Khodjayev voiced support for the business community’s position, acknowledging that many entrepreneurs lack the technical resources and trained personnel required to implement these complex digital systems. Khodjayev emphasized that the state should have prioritized the preparation of infrastructure and the training of specialists before mandating such rigorous compliance.

Echoing the sentiment for a more balanced approach, Akmalkhuja Mavlonov, Chairman of the Customs Committee, suggested that the primary focus should be on improving the effectiveness of monitoring and supervision rather than simply increasing the severity of punishments. He argued that robust control mechanisms should be established first before resorting to heavy financial sanctions.

Article 227–1, which regulates digital marking requirements, has been in effect since June 2022. It has already undergone significant changes; in 2024, the government reduced penalties 50-fold – from 100% to 2% of turnover – and wrote off a substantial portion of accumulated debts.