Uzbekistan to slash business fines by half for early payment

The proposals highlighted ongoing issues in the application of fines to entrepreneurs. Most penalties are currently issued by authorized government agencies, while a smaller share is imposed by courts.

In this regard, officials proposed introducing, starting from October 1, 2026, a new and unified mechanism to encourage the voluntary payment of financial fines. Under this mechanism, a business entity would pay 50 percent of the fine within one month of receiving the decision from the authorized body and would then be exempt from paying the remaining amount.

Officials also proposed allowing businesses to pay fines in equal installments over six months. In this case, if a business entity makes an initial payment equal to one-sixth of the fine within one month of the ruling, the installment plan would automatically take effect.

To strengthen judicial oversight, officials proposed creating a mechanism to return collected funds within 15 days when a court cancels or invalidates a decision by an authorized body imposing a financial fine. If authorities miss this deadline, they would charge interest for each day of delay based on the Central Bank’s key rate.

Officials also focused on digitalizing the procedures for applying financial fines. They proposed introducing an electronic register of financial fines imposed on business entities into the “Unified State Control” information system operated by the Business Ombudsman.

After issuing a decision, authorized bodies would enter it into this system and certify it with an electronic digital signature. Any decision not entered into the system or not confirmed with a digital signature would be considered invalid, and authorities would not be allowed to collect fines based on it.

Officials also emphasized the need to maintain accurate records of financial fines, monitor them, enable online payments through a mobile application, and integrate the information systems of relevant agencies. They also proposed introducing an online appeal mechanism for financial fines through a business entity’s personal account, with automatic suspension of enforcement once an appeal is filed.

The presentation also included a proposal to draft a law “On Measures of Legal Influence,” aimed at unifying procedures for applying such measures.

The president stressed the importance of ensuring strong protection of the rights and legitimate interests of business entities, supporting their activities while ensuring compliance with the law, and guaranteeing fairness and transparency in the application of fines.

Mirziyoyev instructed relevant officials to further refine the proposals, strengthen judicial oversight, accelerate digital transformation, and establish a unified, clear, and fair legal framework in this area.